Senate Democrats Reject CLARITY Act Over Ethics Concerns
- Senate Democrats rejected the latest CLARITY draft due to weak ethics rules, reducing its passage odds to just 18%.
- State attorneys general, led by New York AG Letitia James, opposed the bill, citing concerns over limited authority to protect investors from fraud.
- The bill’s complexity and potential impact on community bank deposits raised doubts among GOP members ahead of Tuesday’s cloture vote requiring a supermajority of 60 votes.
- Senator Mark Warner highlighted dissatisfaction with the current ethics provisions in the draft, prompting Democrats to prepare a counteroffer.
The future of the Digital Asset Market Clarity Act remains uncertain as Senate Democrats plan a counteroffer following their rejection of the Republican-drafted version due to inadequate ethics rules and concerns about investor protection.
With only an estimated 18% chance of passing this year, the CLARITY Act faces significant hurdles in gaining bipartisan support before Tuesday’s crucial cloture vote. (Source)
