White House reaches CLARITY Act ethics deal as Lummis renews Senate push

The CLARITY Act is facing delays in the Senate as Democrats and Republicans remain divided over who should enforce proposed ethics restrictions on federal officials with crypto ties. Democrats want state attorneys general to police the rules, while the White House and Republicans want that authority assigned to the U.S. attorney general, a split that has become a central obstacle to advancing the crypto market-structure bill. The proposed provision would bar senior government officials from involvement in crypto businesses, including the president, vice president and all members of Congress. Democrats favor state-level enforcement because they are concerned the Justice Department could be influenced by the president. Todd Blanche, President Donald Trump's former personal lawyer, has been nominated for attorney general. Trump has said he agreed to what he called the "most comprehensive and broadest ethics provisions in history," but the language has not yet been shared with Democrats. The timing is increasingly tight. August 7, the final day before the Senate's summer recess, is being treated as the last realistic chance to pass the bill this year. Industry participants expect it could reach the Senate floor as early as the start of next week, in line with a timetable previously signaled by Senate Majority Leader John Thune, though a final vote could still take several more days. Even if the Senate approves the measure, it would still require House passage after lawmakers return in September. Divisions among House Republicans have already disrupted other legislation and could complicate the bill's path, while some Democrats are discussing adding prediction-markets policy, creating another potential hurdle. Trump's family's crypto ties, including a stake in World Liberty Financial, have also kept conflict-of-interest concerns at the center of the debate.