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Woofun AI reports that US Senators Thom Tillis and Ruben Gallego have delivered revised ethics guidelines for the CLARITY Act to the White House, marking a pivotal shift in the cryptocurrency market structure bill's legislative trajectory. This bipartisan submission serves as a direct counteroffer to the Trump administration, specifically targeting the ethical provisions within the Digital Asset Market Clarity Act to address prior legislative friction points.
The core modification transfers the enforcement authority for banning federal officials from issuing or sponsoring tokens away from the US Attorney General and onto state authorities. This structural change aims to alleviate concerns raised by lawmakers regarding federal overreach, effectively decentralizing the regulatory mechanism for token-related ethical violations. By removing the US Attorney General from this specific enforcement role, the revised framework seeks to balance federal oversight with state-level jurisdiction.
Senator Ruben Gallego, a Democrat, emphasized that provisions concerning consumer protection, illicit finance, conflicts of interest, and market integrity "must be strengthened" to secure his continued cooperation with Republicans. Per Woofun AI, the political calculus is driven by Senate Democrats’ refusal to support the CLARITY Act if it preserves US President Donald Trump’s dominance over the industry he regulates. With Republicans holding a 52-47 majority in the Senate due to Senator Mitch McConnell’s medical absence, securing Democratic votes is mandatory to reach the 60-vote threshold required for passage.
The necessity of these revisions underscores the fragile coalition required to advance crypto legislation in the current Senate composition. Without Democratic buy-in, the bill remains stalled despite Republican control, highlighting the critical role of ethical safeguards in bridging partisan divides. This development signals that legislative success hinges on accommodating Democratic demands for robust consumer and market protections.