A group of Democratic senators who generally support crypto legislation rejected the latest draft of the CLARITY Act, published on July 22 by Senate Republicans, arguing that its provisions on ethics, consumer protection, illicit financing, conflicts of interest and market integrity remain insufficient.
The legislators involved —among them Angela Alsobrooks, Cory Booker, Ruben Gallego and Raphael Warnock— issued a joint statement indicating that the text “does not meet the necessary standards”. The CLARITY Act draft includes an ethics package negotiated between the White House and Republican senators Cynthia Lummis and Bernie Moreno, which would prohibit sitting officials from issuing or sponsoring digital assets for compensation purposes until January 20, 2029.
It would also require the divestment of crypto holdings or their placement in qualified blind trusts. However, Senator Alsobrooks sharply criticized the proposal to grant the Department of Justice exclusive authority to enforce the law, calling it “deranged and irresponsible“, and argued that state attorneys general should also hold that power.
The CLARITY Act needs 60 votes in the Senate to advance, a threshold that prediction markets estimate as increasingly out of reach: the odds of passage this year fell from 70% to 31% in just a few weeks.
Source:Â https://www.cortezmasto.senate.gov/news/press-releases/50183-2/
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