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CLARITY Act faces ethics dispute over code of conduct enforcement
The latest Senate draft would bar covered federal officials from issuing or sponsoring digital assets and would limit platform listings of those assets until the ethics restrictions expire in 2029.
The long-awaited US Digital Asset Market Clarity Act, known as the CLARITY Act, has hit another snag as negotiators clash over ethics provisions and who should enforce them, according to Cointelegraph.
Both sides agree the United States needs clearer rules for digital assets, but Democrats and Republicans differ on enforcement. Democrats argue the proposal leans too heavily on the Department of Justice and want state attorneys general to be able to step in if DOJ does not enforce the law, while Republicans push to keep ethics enforcement with DOJ through a single national framework.
Cointelegraph reports that the latest Senate draft would prohibit the president, vice president, members of Congress, and other senior federal officials, and their spouses, from issuing or sponsoring digital assets while in office. The draft would also prevent crypto platforms from listing assets issued or sponsored by covered officials.
Under the proposal, the restrictions would expire in 2029, after President Donald Trump’s current term ends, though covered officials would still be permitted to own cryptocurrencies. Cointelegraph notes that Coinbase CEO Brian Armstrong previously described months of negotiations as taking thousands of hours of work on both sides.