Clarity Act odds slump to 18% as Democrats push back on ethics provisions

The CLARITY Act, Washington’s most ambitious attempt at a comprehensive digital asset regulatory framework, is looking increasingly unlikely to reach the finish line. Prediction market odds for the bill’s passage have cratered to 18%, down from 35%, after Senate Democrats balked at what they consider toothless ethics provisions in the latest Republican draft. The sticking point is straightforward: Democrats want significantly broader conflict-of-interest rules, particularly targeting political figures with substantial crypto holdings. Republicans offered a narrower version. Democrats said no thanks. What Democrats want, and what they got Senate Democrats including Angela Alsobrooks, Ruben Gallego, and Cory Booker have publicly rejected the GOP’s latest draft, calling it an “unsuccessful offer.” Their core complaint centers on the scope of ethics enforcement baked into the legislation. The Republican version limited enforcement powers primarily to the Department of Justice. Democrats countered that this was insufficient, pushing instead for state attorneys general to have enforcement authority over conflicts of interest in the digital asset space. The backdrop here matters. Trump fa...