Democrats threaten to block CLARITY markup over ethics

The Senate Banking Committee is scheduled to mark up the Digital Asset Market Clarity Act, known as CLARITY, on Thursday. Senate Democrats say they will withhold support unless the bill includes enforceable ethics provisions for members of Congress, the president and the vice president.

The House passed CLARITY in July 2025. The bill has been delayed in the Senate for months over provisions on stablecoin yield, tokenized equities and ethics language. The Senate Agriculture Committee approved its version in January; both committees must clear the measure because it affects securities and commodities law.

Senators Thom Tillis and Angela Alsobrooks reached a stablecoin compromise earlier this month on stablecoin yield rules, removing one obstacle to advancing the bill. Supporters on the Banking Committee say a committee-level vote could keep momentum toward a final bipartisan package.

Sen. Kirsten Gillibrand of New York has made ethics language a condition for Democratic votes. She said Americans deserve “a well-regulated market with strong consumer protections and real ethics reforms so politicians can’t cash in on their insider status for personal gain.” Gillibrand said she would not back CLARITY without enforceable limits on conflicts of interest for elected officials.

Sen. Tim Scott, chair of the Banking Committee, argued concerns about the president’s crypto ties fall under the Senate Ethics Committee and should be addressed there before any floor vote. Sen. Thom Tillis has indicated he will not support the bill without a bipartisan agreement on the ethics provision. Sen. Cynthia Lummis of Wyoming, who has led the Senate effort on the bill, urged colleagues to approve CLARITY at the markup.

Cody Carbone, chief executive of The Digital Chamber, said he expects ethics questions to be resolved on the Senate floor rather than in the Banking Committee, and therefore does not expect the ethics debate to block the scheduled markup.

If CLARITY advances from the Banking Committee and secures the 60 votes needed in the Senate, lawmakers would still likely need to reconcile differences with the House before sending a final bill to the president. The debate over ethics provisions reflects concerns about industry influence on elected officials. President Donald Trump had ties to the crypto industry through a memecoin called Official Trump (TRUMP) and his family’s crypto business, World Liberty Financial; reports indicate those ventures contributed to an increase in his reported personal wealth by about $1.2 billion as of July 2025.

Thursday’s markup will show whether committee negotiators can move forward on regulatory language for stablecoins and tokenized assets while members continue to seek agreement on ethics provisions.