President Donald Trump is evaluating a bipartisan ethics proposal just days before the Senate's August recess deadline to pass the Digital Asset Market Clarity Act, or CLARITY Act. The legislation aims to establish clear regulatory authority over digital assets by dividing responsibilities between the SEC and CFTC.
The latest counteroffer, delivered to the White House on July 29 by Senators Thom Tillis and Ruben Gallego, introduces a plan for state attorneys general to enforce crypto conflict-of-interest rules alongside the Department of Justice. This approach addresses concerns that earlier drafts gave DOJ exclusive enforcement powers, excluding state-level participation and private lawsuits.
Enforcement dispute threatens bill’s progress
Disagreements over enforcement mechanisms have become the bill's main obstruction. Initial optimism after a White House ethics deal on July 21 faded quickly when Senate Democrats highlighted five loopholes, including the DOJ’s exclusive control, which limited oversight effectiveness. The bipartisan counteroffer aims to plug these gaps by empowering state authorities to police federal officials involved in the digital token market.
Coinbase CEO Brian Armstrong called the bill’s progress "the one yard line" just days before this development, underscoring how close lawmakers are to finalizing rules critical for the crypto industry’s federal legal clarity.
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