Senate Majority Leader John Thune said this week he's optimistic the CLARITY Act can pass with bipartisan backing, after negotiators agreed to add an ethics provision targeting elected officials' crypto dealings. The provision, which aims to restrict lawmakers from trading or promoting digital assets while in office, was the final sticking point in months of closed-door talks.
The ethics provision that broke the logjam
The new language would bar members of Congress and their immediate families from holding certain crypto investments or participating in token launches during their tenure. It also requires public disclosure of any crypto-related income above a threshold still being finalized. Thune's office confirmed the provision was drafted in response to growing public concern over conflicts of interest — a handful of lawmakers have faced scrutiny for promoting coins or taking advisory roles at crypto firms.
“This is about trust,” Thune said in a brief hallway interview. “If we're going to regulate this industry, the people writing the rules can't be cashing in on the side.” The provision reportedly won over several holdout Democrats who had demanded stronger guardrails before they'd sign on.
Thune's push for a deal
The Majority Leader has made the CLARITY Act a priority this session, arguing that the U.S. needs clear federal rules for crypto to prevent a patchwork of state laws and to keep innovation from moving offshore. He's been shuttling between committee chairs and the minority leader's office for weeks, trying to bridge differences on everything from stablecoin oversight to how the SEC should classify tokens.
The ethics piece was the last unresolved item. Once it was settled, Thune told reporters he expects the bill to move to the floor “in the coming weeks.” He didn't rule out amendments but said the core framework has enough support to pass.
What the CLARITY Act does
The bill, formally the Crypto Legal and Regulatory Integrity and Transparency Act, would create a new regulatory category for digital assets that aren't securities or commodities, assign primary oversight to the Commodity Futures Trading Commission, and set standards for exchanges and custodians. It's been in development for over a year and has drawn input from both industry groups and consumer advocates.
Critics on the left say it doesn't go far enough on investor protections; some on the right worry it gives regulators too much discretion. But the ethics provision has quieted the loudest objections from the progressive caucus, at least for now.
What happens next
The bill heads to the Senate Banking Committee for a markup session expected in early August. Thune said he's confident it will clear committee with a bipartisan vote. If it passes the full Senate, the House would need to take up a companion version — a process that could stretch into the fall.
For now, the focus is on keeping the coalition together. Thune's office is already scheduling briefings for undecided senators. The clock is ticking: with the midterm election cycle ramping up, any bill that doesn't move by late September risks getting buried in campaign-season gridlock.
