Tillis, Gallego Send New CLARITY Ethics Plan to White House
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- Sens. Thom Tillis and Ruben Gallego submitted a counteroffer to the Trump administration with revised ethics provisions for the Digital Asset Market Clarity (CLARITY) Act, with a closing window before the Senate's month-long recess.
- The revised guidelines would let state authorities rather than the US Attorney General enforce a ban on federal officials issuing or sponsoring tokens, addressing concerns raised in the first draft.
- Senate Republicans hold an effective 52-47 majority with Sen. Mitch McConnell absent due to medical reasons, meaning the bill needs Democratic support to reach the 60-vote threshold.
- Gallego previously said provisions on ethics, consumer protection, illicit finance, conflicts of interest, and market integrity 'must be strengthened' and pledged to work with Republicans to get the bill 'over the finish line.'
- Many Senate Democrats have publicly said they will not vote for the CLARITY Act 'if it protects Trump's dominance over an industry that he will have more control to regulate.'
Why it matters: The ethics compromise is designed to peel off Democratic votes needed to clear the 60-vote threshold, but Democrats' stated condition — not letting Trump profit from an industry he would also regulate — goes deeper than ethics rules can address, putting pre-recess passage in serious doubt.
