Gallego Slams Republican CLARITY Act Ethics Plan

The CLARITY Act is designed to establish a federal regulatory framework for U.S. digital-asset markets, clarifying oversight responsibilities and compliance requirements for the crypto industry. Its progress is closely watched because passage could provide greater policy certainty for market participants and mark a significant step in Congress’s effort to define how digital assets are supervised in the United States.

Polymarket now puts the probability of the CLARITY Act passing by Dec. 31 at 32%, the lowest level this year and down from 37% cited in an earlier report. Democrats and Republicans remain divided over ethics provisions addressing government officials’ conflicts of interest involving digital assets. Senate Majority Leader John Thune has also acknowledged that the bill will not reach an August vote, leaving lawmakers with a narrowing window after the congressional recess.

The US Congress is considering the CLARITY Act, which seeks to clarify regulatory responsibilities for digital assets and trading platforms and reduce legal uncertainty for crypto companies. Senator Cynthia Lummis says clear rules are critical to bringing businesses back to the United States and preserving the country’s leadership in financial technology.

Lummis warned that this week could be the United States’ last critical opportunity to advance the CLARITY Act before 2030. She said China could otherwise write the rules for a new financial era. Negotiations have continued since the Senate returned, but Democrats and Republicans remain divided over provisions covering lawmakers’ ethics and safeguards against bad actors. A vote on crypto market structure could take place as early as August.