Senate Republicans on Wednesday circulated new text of a landmark cryptocurrency bill, unveiling changes to the so-called Clarity Act ahead of a potential floor vote next week.
The new language, which needs bipartisan support to pass the Senate, does not currently have sign-off from any Democrats. The bill would overhaul a wide range of federal financial regulations to incorporate crypto trading.
The 616-page draft includes a White House-approved ethics provision that would put in place new rules related to how federal officials can engage with digital assets. Democrats have long demanded that the crypto bill include an ethics provision to address concerns about the Trump family’s lucrative crypto businesses. But they have already signaled that the provision Republicans have agreed to may not go far enough to win their support.
The ethics language stems from an agreement between GOP senators and the White House, and it does not currently have support from any Democrats.
The ethics language would be enforceable by the Department of Justice — a major sticking point for Democrats, who say the DOJ under Trump can’t be trusted. They have pushed for state attorneys general to have a role in enforcing ethics language in the bill.
The draft ethics language says that the attorney general “shall bring a civil action in an appropriate district court of the United States against” a government official who “knowingly and willfully violates” the requirements in the provision or “a digital asset intermediary that knowingly and willingly violates” them. The draft language specifically stipulates that “no action, public or private, may be brought under this section by any State attorney general or any person other than the Attorney General.”
Sen. Angela Alsobrooks (D-Md.), who voted for the crypto bill in committee but has cautioned that her support is conditional on further changes being made on ethics and other issues, said this week that any enforcement language empowering only the DOJ is “an unserious offer.”
“I wouldn’t support the bill if that’s the language,” she said in a statement Tuesday. “But we’ll keep working from that floor to reach an agreement that holds us all accountable.”
The ethics proposal stipulates that federal officials “shall not, in exchange for consideration,” “issue a digital asset” or “sponsor a digital asset” while serving as a public employee.
The prohibitions would apply to public officials or employees and their spouses and would sunset in 2029. The language bars crypto companies from listing assets that are “issued” or “sponsored” by federal officials in violation of the provision.
Timing: Senate Majority Leader John Thune said Wednesday that he hopes to put a landmark cryptocurrency bill on the floor next week, signaling he intends to put it up for a vote whether it has the bipartisan support necessary to pass or not.
Asked if he is close to teeing up the bill for consideration next week, Thune said: “Hopefully.”
“Once the text is out, we’ll have to figure out what the traffic will bear, what changes have to be incorporated in order to 60 on the floor,” he said.
Jordain Carney contributed to this report.
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