Key Highlights
- Sen. Angela Alsobrooks said she will not support the CLARITY Act if the DOJ is the sole enforcer of its ethics provisions.
- Her objection emerged just as lawmakers appeared close to finalizing the updated Senate bill text.
- Alsobrooks is one of only two Democrats who previously voted to advance the bill from the Senate Banking Committee.
Progress on the Senate’s Digital Asset Market CLARITY Act stalled again on Tuesday when a Democratic supporter of the bill spoke out against the Biden administration’s plan for enforcing ethical guidelines related to digital assets.
Senator Angela Alsobrooks stated on X (formerly Twitter), through journalist Eleanor Terrett, that she won’t vote for the bill unless enforcement of its ethical guidelines is shared. She called the current plan giving that power only to the Department of Justice “not serious.”
Senator Kyrsten Sinema told me the White House’s proposal to use the Department of Justice to enforce ethics rules in the Clarity Act is not a serious solution and she won’t vote for the bill if that’s the only way it would be enforced. Senator Bernie Moreno has been…
— Eleanor Terrett (@EleanorTerrett) July 21, 2026
Negotiators from both parties returned to Washington to continue talks about ethics rules, which have been holding up the final version of the Senate bill for several weeks.
New objection as negotiators showed progress
A new dispute arose just hours after hopes were rising for the bill’s passage. Earlier today, Terrett reported that sources in the industry thought a deal was close, following the White House’s approval of an ethics plan and sharing a draft with several Senate Republicans.
People in the industry saw recent events as a promising sign that the revised CLARITY Act might be published soon, following several months of holdups. However, it became clear on Tuesday that negotiations are still ongoing and a final agreement hasn’t been reached.
Why Alsobrooks could influence the bill’s future
Senator Alsobrooks’ opinion is particularly important because she’s one of just a few Democrats on the Senate Banking Committee who supported moving the CLARITY Act forward earlier in the year.
Since Republicans will likely need help from Democrats to pass legislation in the Senate, keeping senators like Alsobrooks on board is now more crucial than ever.
As a crypto investor, I’ve been following Senator X’s stance closely. She’s made it clear she needs to see real ethical protections in place before she’ll support this new legislation. While she wasn’t thrilled with the initial plan, she did say talks are still happening, which is encouraging – hopefully they can address her concerns and create something that works for everyone.
Who should enforce the rules?
The discussion has moved past simply deciding if ethical guidelines should be included in the bill; now, the focus is on determining who will be responsible for making sure they’re followed.
Senator Bernie Moreno of Ohio, working with Senator Cynthia Lummis, stated that the Biden administration’s latest plan would give the Department of Justice, rather than state attorneys general, the power to enforce regulations.
This proposal is now the main issue holding up negotiations. It’s still unclear if lawmakers will maintain current Justice Department oversight, allow states to take on more enforcement responsibilities, or reach a different agreement.
Ethics still dominates Senate negotiations
Beyond Alsobrooks’ objections, negotiators continue working through the broader ethics package.
Terrett reported on Tuesday that talks between Democrats and Republicans are still mainly centered around ethics rules. Lawmakers are also continuing to examine parts of the legislation that deal with decentralized finance.
I’m following the conversations happening on Capitol Hill today, and right now, ethics is the main issue being debated. While there’s still discussion around regulations for DeFi, it’s ethics that’s proving to be the biggest obstacle to progress.
Lummis’ office says updated text is still coming
Despite the renewed disagreement, Senator Cynthia Lummis’ office continues signaling progress.
A representative for Senator Lummis said talks at the White House last week went well. They indicated that upcoming ethical guidelines will show the results of those positive discussions.
Senate Republicans are still anticipating the release of updated bill text shortly, despite ongoing discussions about how the law will be enforced.
Why CLARITY matters more now
Talks have restarted as lawmakers in Washington face increasing calls to create clear rules for the digital asset industry.
Just a few days ago, it had been a year since the GENIUS Act was passed into law. However, regulators still haven’t finished writing the rules needed to put it into effect, meaning the stablecoin market is currently operating without clear federal guidelines.
The recent hold-up has put more focus on the CLARITY Act. This proposed law aims to create clearer guidelines for cryptocurrency platforms, digital asset trading, how digital assets are stored, and government supervision of the industry.
A lot of people in the industry believe passing the CLARITY Act is crucial to prevent delays like those we’ve seen before.
Senate calendar misses another milestone
Timing continues to be a major hurdle. The latest version of the Senate proposal has been delayed several times, including anticipated releases around the July 4th break and earlier this week.
Lawmakers are pushing negotiators to finish the bill before they begin their summer break in August.
As a crypto investor, it looks like things are still moving forward with the CLARITY Act, but there’s one big sticking point: everyone in the Senate can’t agree on how to enforce the rules. Negotiations are ongoing, but until they sort that out, the bill won’t be up for a vote. It’s frustrating, but it seems like we’re getting closer to a resolution, even if it’s slow going.
2026-07-21 21:26