US Prosecutors Propose Changes to CLARITY Act Amid Voting Window
Vexoda Newsroom
Organizations representing law enforcement officials have proposed changes to the CLARITY Act, signaling a potential clash with the White House and Senate Democrats over cryptocurrency regulation.
In an ongoing debate surrounding cryptocurrency legislation, US prosecutors have submitted amendments to the Digital Asset Market Clarity (CLARITY) Act. The National Association of Assistant U.S. Attorneys and the National District Attorneys Association sent a letter to the White House requesting changes that would limit developers' liability under federal law.
The proposal comes as voting on the bill is set to begin in just days, with Senate Majority Leader John Thune unlikely to schedule a vote before an upcoming recess due to procedural hurdles. The CLARITY Act aims to shift regulatory oversight from the U.S. Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which currently has fewer resources for enforcement.
However, the proposed changes have raised concerns among lawmakers. A White House crypto adviser stated that these provisions were far from aligning with administration goals, indicating a potential clash over the bill’s final form. Senator Catherine Cortez Masto is pushing to address the Blockchain Regulatory Certainty Act (BRCA) within CLARITY before any vote.
The pushback on ethics rules in the legislation centers around U.S. President Donald Trump's crypto investments, which yielded him $1.4 billion in 2025. This issue has complicated efforts to pass the bill, with Senate Majority Leader John Thune noting that voting would be difficult without unanimous consent.
The CLARITY Act’s potential shift of authority from SEC to CFTC is significant as both agencies are understaffed and face resource constraints. Anne Kelley, a partner at Mercury Strategies, highlighted the procedural challenges in passing the bill before recess, emphasizing the need for consensus on controversial issues like ethics rules.
Traders should monitor the progress of the CLARITY Act closely, given its potential to reshape regulatory oversight over digital assets. The upcoming Senate work periods from August 7 to September 14 will be crucial as lawmakers attempt to navigate these complex and contentious issues.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.