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CLARITY Act Ethics Deal Collapses as Senate Republicans Withdraw Terms on Tuesday

Regulation & Policy

2026-06-11 13:02:03

According to Crypto In America's Eleanor Terrett, Senate negotiations over the CLARITY Act hit a major setback on Tuesday when Republican senators backed away from ethics language provisions they had previously agreed to in earlier discussions. The key dispute centered on a provision that would have allowed state attorneys general to sue the Department of Justice if it failed to enforce ethics requirements tied to President Trump. Republicans withdrew this authority, citing concerns that similar power could be misused by either party in future disputes, and instead proposed limiting enforcement authority to the Attorney General. Democrats called the shift an "about face" from the tentative agreement reached before the Senate Banking Committee's May markup. The bipartisan group is expected to reconvene Thursday to continue negotiations.

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