Republican Senator Thom Tillis and Democratic Senator Ruben Gallego have officially submitted a revised draft of ethics rules for the CLARITY Act to the White House. The document introduces a key enforcement change: authority to ban federal officials from issuing tokens has been transferred from the U.S. Attorney General to individual state authorities.
This bipartisan move is specifically designed to win over Democrats. Several Democratic lawmakers had previously opposed the bill over concerns about potential Trump-related conflicts of interest at the federal enforcement level. Gallego had earlier laid out strict conditions, demanding that ethics rules, consumer protections, illicit finance safeguards, and conflict-of-interest provisions be bolstered before the crypto framework could move forward.
Seat Math Forcing a Compromise
On paper, Republicans currently hold an effective 52-47 majority in the Senate following Senator Mitch McConnell’s absence due to illness. However, Senate procedural rules require a 60-vote threshold to pass legislation. This gap leaves Tillis and the GOP with little choice but to compromise, accommodate Gallego’s demands, and court eight additional votes from across the aisle.
Before reaching the Senate, the CLARITY Act, officially designated H.R. 3633, established a solid majority track record in the House of Representatives. The bill cleared the House in a 294-134 vote in July 2025. The legislation establishes a taxonomy map for U.S. digital assets across three distinct categories: digital commodities under CFTC oversight, investment contracts within SEC jurisdiction, and payment stablecoins governed by GENIUS Act provisions.
For investors, the bill’s passage would eliminate gray areas. Top-tier crypto assets such as Bitcoin, Ether, XRP, SOL, and DOGE are already locked into grandfather clauses as digital commodities. This legal classification will automatically take effect for all five assets once the bill is signed into law.
Narrow Window Before Congressional Recess
The biggest challenge for the CLARITY Act has shifted from substantive debate to a race against the calendar. The Senate schedule sets a full one-month recess right after August 7. The remaining window is extremely tight to finalize ethics revisions, bring the bill to the floor, and complete a final vote.
A one-month recess risks cooling down deal momentum. Capitol Hill dynamics are prone to shifts, and the bipartisan momentum between Tillis and Gallego could easily evaporate. The days leading up to August 7 will determine whether delegating ethics enforcement to states is enough to persuade eight Democratic senators to cross the aisle, or leave the comprehensive crypto regulatory framework stalled at the door.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
