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White House pushes back after Democrats reject revised CLARITY Act crypto bid
The revised draft would bar top officials from issuing or sponsoring digital assets for compensation, and require sales or blind trusts, with sales above $1,000 triggering disclosures.
The White House pushed back against Senate Democrats after they rejected the latest version of the CLARITY Act, keeping ethics provisions as the central sticking point in negotiations over sweeping federal crypto legislation, according to CryptoSlate.
On July 22, Senate Republicans submitted revised CLARITY Act language that would prohibit the president, vice president, members of Congress, federal judges, and other covered officials from issuing or sponsoring digital assets for compensation while in office.
The proposal would also require covered officials to sell certain crypto holdings, place them into blind trusts they do not control, or use a combination of both approaches. Crypto sales above $1,000 would trigger disclosure requirements.
CryptoSlate reports the draft would give the Justice Department civil enforcement authority over violations, including cases involving exchanges that knowingly list prohibited digital assets. The outlet notes that the Democrats who rejected the bill include several lawmakers who had previously backed efforts to establish a federal framework for digital assets, creating an immediate vote-count problem for Republicans in the Senate.