Democratic Party Opposes New Version of the Clarity Act Over Ethics Provisions, Emphasizes Bipartisan Support Remains Crucial

U.S. Senate Republicans released a 616-page new version of the Clarity Act cryptocurrency regulatory bill on Wednesday, marking a key legislative development in Congress's attempt to comprehensively regulate the digital asset industry. The crypto industry broadly welcomed the draft, noting it retains protections for software developers and is expected to provide much-needed regulatory clarity for the U.S. digital asset market.

Crypto Council for Innovation CEO Ji Hun Kim stated that bipartisan support is "crucial" for the bill's passage. Solana Policy Institute CEO Miller Whitehouse-Levine called on Congress to seize the opportunity, while Coinbase CEO Brian Armstrong noted that the lack of a federal regulatory framework previously allowed bad actors like FTX to harm consumers and forced a significant amount of crypto business to move overseas.

However, multiple Senate Democrats quickly expressed opposition, arguing that the ethics provisions in the new text regarding potential conflicts of interest related to Trump's crypto assets are too weak. Senator Angela Alsobrooks stated that the current Republican proposal is still "not enough," and that provisions concerning elected official ethics, consumer protection, illicit finance, conflicts of interest, and market integrity all need strengthening.