- Senate prepares for an initial CLARITY Act vote as White House reviews ethics proposal.
- Ethics negotiations and unresolved provisions continue to shape the bill’s Senate path.
- Brian Armstrong backs the CLARITY Act ahead of a potential Senate procedural vote.
The Senate could take its first procedural step on the CLARITY Act before lawmakers leave for the August break, but negotiations over the bill’s remaining ethics provisions continue to determine its path forward.
Senate Majority Leader John Thune said the chamber will likely hold an initial vote before the break, while the White House reviews a bipartisan ethics counterproposal that supporters hope will unlock enough backing for the legislation.
White House Yet to Respond to Ethics Counterproposal
Journalist Eleanor Terrett reported that the White House had not responded to an ethics counterproposal submitted last Thursday by Senators Thom Tillis and Ruben Gallego. According to the report, the proposal remains the largest unresolved issue ahead of a potential Senate vote.
The proposal follows weeks of bipartisan talks between Tillis and Gallego after earlier ethics language failed to receive support from several Democrats. According to Eleanor, the revised package would allow state attorneys general to sue the Department of Justice if it fails to enforce ethics laws against federal officials.
The regulatory mechanism mirrors a provision of the Laken Riley Act, which permits state attorneys general to pursue legal action against federal officials in specific immigration enforcement cases. However, it remains unclear whether additional safeguards were added to address concerns about the scope of state enforcement authority.
While ethics provisions remain at the center of negotiations, other sections of the legislation also continue to receive attention.
According to the Crypto In America report, a Democratic strategist said the Blockchain Regulatory Certainty Act language and concerns surrounding the agriculture section remain essential to securing the bipartisan support needed to reach the Senate’s 60-vote requirement.
Several Republican senators have also expressed concerns about the bill’s stablecoin yield provisions. Senators Mike Rounds, James Lankford, and Jerry Moran have previously raised questions about the potential effect of yield-bearing stablecoin products on bank deposits, as have banking organizations.
Armstrong Shows Support for the Legislation
Coinbase Chief Executive Brian Armstrong also commented on the legislation ahead of the expected vote. In a statement on X, Armstrong said the CLARITY Act is indicative of bipartisan efforts to create a regulatory structure for digital assets in the United States.
He said the proposal aims to create clearer rules for the crypto sector, strengthen consumer protections, expand law enforcement tools, and provide additional authority for banks seeking to integrate stablecoins and other digital asset services. Armstrong also urged senators to support the legislation during the upcoming vote.
Related: Crypto Clarity Act Vote Delayed as Senate Faces August Recess Deadline
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