TLDR
- Sen. Ruben Gallego said Congress can still pass the Clarity Act despite unresolved ethics negotiations.
- The latest ethics proposal would allow state attorneys general to enforce restrictions on public officials issuing or sponsoring digital assets.
- The crypto bill still needs 60 Senate votes to advance, making bipartisan support essential.
- Lawmakers also remain divided over stablecoin yield rules and measures aimed at illicit crypto activity.
- Senate Majority Leader John Thune has scheduled an initial procedural vote on the Clarity Act for September 15.
Sen. Ruben Gallego said Congress can still pass the Clarity Act, but an unresolved ethics dispute remains the main barrier. The Democratic senator said lawmakers continue working on a deal as the crypto bill moves toward a key Senate vote in September. Talks now face a narrow window before lawmakers return to Washington.
Ethics Dispute Holds Up Crypto Bill
Speaking at the SALT conference in Wyoming on Wednesday, Gallego said lawmakers had sent several ethics proposals to President Donald Trump. He said the White House had returned some drafts without changes, rejected others, or offered no response.
The dispute centers on rules for public officials and their spouses who issue or sponsor digital assets. Democrats have pushed for stronger enforcement as lawmakers debate how the Clarity Act should address possible conflicts tied to crypto businesses.
Trump agreed in July to language that would block public officials, employees, and their spouses from issuing or sponsoring digital assets. That version gave enforcement authority to the Justice Department and included a sunset date in January 2029.
Democrats said those terms did not go far enough. Gallego and Republican Sen. Thom Tillis have since offered another proposal that would also allow state attorneys general to enforce the restriction on public officials and their spouses.
Senate Still Needs 60 Votes
Gallego said the Senate still needs 60 votes to move the crypto bill forward. He said a stronger ethics deal could help attract the support needed to advance the Clarity Act from the chamber.
Other issues also remain unsettled. Lawmakers continue to debate stablecoin yield and whether the bill includes enough measures to address illicit financial activity. The White House had not commented on the latest ethics talks.
Congress will have only a few weeks to work on the bill after lawmakers return to Washington next month. Senate Majority Leader John Thune has scheduled an initial procedural vote for September 15.
Gallego said some political groups may prefer to leave the issue unresolved, while others want a final agreement. He said supporters remain focused on passing rules that allow crypto innovation while addressing ethics and other outstanding concerns before the vote.
