CLARITY Act Faces Senate Banking Committee Challenges Amid Ethics Concerns

The CLARITY Act is advancing towards a Senate Banking Committee markup next week, but its progress is being hindered by a dispute over ethics limits related to U.S. President Donald Trump's family crypto interests. According to NS3.AI, the bill aims to clarify whether digital assets should be regulated by the SEC or the CFTC. A compromise on stablecoin rewards has helped revive negotiations, yet Democrats are pushing for ethics language to be included in the committee text. Meanwhile, banking trade groups continue to oppose certain aspects of the stablecoin reward provisions.