CLARITY Act Faces Stalled Ethics Talks; Senate Has 31 Days Before Recess

According to BlockBeats, on June 11, the CLARITY Act faced stalled ethics negotiations in the U.S. Senate after Republicans and the White House withdrew provisions allowing state attorneys general to sue the Justice Department. The breakdown centers on competing proposals for enforcement authority and concerns over potential conflicts of interest, with Democrats conditioning their support on strong ethical safeguards related to crypto interests worth approximately $2.3 billion gained by Trump and his family since returning to the White House.

Separately, federal law enforcement agencies expressed concerns that Section 604 of the bill—shielding non-custodial software developers from liability for third-party use of their code—could undermine investigations into blockchain-based money laundering. The White House crypto council plans to address these concerns in meetings with law enforcement representatives this week. With the Senate recessing in August, only 31 legislative working days remain before the informal deadline for passing the bill ahead of midterm elections.