Republican senators warn CLARITY Act could fail over ethics impasse

  • Republican senators warned the CLARITY Act faces failure over unresolved ethics provisions.
  • Mike Rounds and Thom Tillis cited the impasse involving the White House.
  • Roger Marshall said he had heard no discussion of the crypto bill.

The CLARITY Act faces renewed doubts in the Senate as Republican senators warn that unresolved Democratic demands for ethics provisions involving the president and the president's family could derail the bipartisan crypto-market-structure bill when lawmakers return next week. Mike Rounds said the outlook appeared unfavorable, while Thom Tillis said the legislation would fail if the White House does not help close the divide over the ethics language. Roger Marshall said he had heard no discussion of the bill and that constituents in his home state were not raising the issue. A failed vote could prompt the crypto industry to direct funding toward pivotal elections, Semafor reported. The warnings reinforce earlier assessments that the bill has lost momentum ahead of a reported Sept. 15 Senate cloture vote. Andy, host of The Rollup podcast, had put the bill's chances of passage at 3% to 5%, below an 18% YES probability shown on Polymarket. Democratic concerns over President Trump's crypto-related business interests had already been identified as a central obstacle. The CLARITY Act would establish federal boundaries between digital commodities and digital securities and divide oversight responsibilities between the CFTC and SEC. If the broad measure fails, lawmakers and industry participants have discussed pursuing narrower initiatives involving stablecoins, tokenization, perpetual contracts and prediction markets.

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