Republican Senator Thom Tillis and Democratic Senator Ruben Gallego have sent the White House a revised bipartisan ethics proposal for the CLARITY Act, marking a fresh attempt to break the dispute threatening to stall the landmark crypto market structure bill.
Tillis, a North Carolina Republican, and Gallego, an Arizona Democrat, delivered the counteroffer Thursday morning, Punchbowl News reported. The proposal would reportedly allow state attorneys general to enforce restrictions on covered federal officials issuing or sponsoring digital assets, rather than leaving enforcement solely to the Justice Department.
The text has not been released publicly, and the White House has not confirmed whether it will accept the changes.
Enforcement powers drive the ethics fight
The latest move targets one of the most contentious parts of the Senate negotiations: who can act when a covered federal official is accused of violating the proposed crypto ethics rules.
The White House-backed draft circulated last week would prohibit covered federal officials and their spouses from issuing or sponsoring digital assets, but would not extend the restriction to other family members. It would place enforcement with the Justice Department and allow the provisions to expire in January 2029.
Democrats have argued that the limits leave major enforcement gaps, with Gallego and six other Democratic senators saying on July 22 that the bill still needed stronger safeguards on ethics, consumer protection, illicit finance, conflicts of interest and market integrity.
Senate clock tightens around CLARITY
The CLARITY Act cleared the Senate Banking Committee in May by a 15-9 vote, with Gallego and Sen. Angela Alsobrooks joining Republicans, but it still needs 60 votes to advance through the full Senate, making broader Democratic support essential.
Lawmakers face a narrowing window before senators leave for the August recess after Aug. 7, while disagreements over stablecoin rewards and protections for software developers continue alongside the ethics dispute.
Washington targets conflicts between office and market gains
The CLARITY Act ethics fight comes amid widening scrutiny of public officials profiting from markets they regulate or outcomes they may influence.
President Donald Trump reported more than $1.4 billion in income from his family’s cryptocurrency ventures in 2025, according to his annual financial disclosure released by the Office of Government Ethics.
The scale of those earnings prompted Democratic Senator Elizabeth Warren on July 16 to request an updated disclosure covering the first half of 2026, as the Senate weighs legislation that could reshape the U.S. digital-asset market.
Democratic Senator Kirsten Gillibrand of New York separately called for elected officials and their spouses to be barred from issuing or sponsoring digital assets, citing Trump’s reported memecoin income.
The pressure extends beyond digital-asset ownership. Republican Representative Bryan Steil introduced legislation that would bar members of Congress, their spouses and dependent children from wagering through prediction markets on political outcomes, government policy or official actions, including events learned through congressional service.
Together, the moves reflect growing concern over officials benefiting from industries, information or decisions connected to their public roles.
