Gillibrand Demands Ethics, AML Rules Before CLARITY Vote

Sen. Kirsten Gillibrand urged lawmakers to add specific ethics and anti‑money‑laundering protections before the Senate votes on the CLARITY Act. She called for a ban on members of Congress, the president, the vice president and senior administration officials issuing or promoting cryptocurrencies or memecoins while in office.

In an interview, Gillibrand linked the provisions to efforts to limit illicit finance and terrorism financing and said negotiators are drafting language to prevent conflicts of interest by senior officials engaging with digital tokens.

The bill must clear a procedural path before reaching the Senate floor. The Senate Banking Committee is expected to approve its draft, including any last‑minute edits, and that text will then be merged with a version from the Agriculture Committee. Negotiators plan to restore earlier bipartisan elements that had broader support after concerns that the Agriculture Committee’s version had become more partisan.

Lawmakers involved in talks anticipate spending about two to four weeks reconciling the committee drafts and producing a single unified bill. Once the drafts are merged and agreed, the final text would be sent to the full Senate for a vote.

Supporters say the CLARITY Act would impose fund segregation and transparency requirements at digital asset platforms, introduce anti‑money‑laundering protections, and give law enforcement clearer tools. The proposal would limit money‑transmitter regulations to custodial services and not apply those rules to software developers and other noncustodial actors.

The timetable has generated public reactions. Senator Cynthia Lummis registered frustration with the delays on social media. A prediction market placed the odds of passage at roughly 65 percent at the time of reporting. Senators Thom Tillis and Angela Alsobrooks issued a joint statement indicating negotiators believe agreement on a final text is nearing completion.

Negotiators must reconcile priorities from members focused on tighter safeguards against illicit finance and conflicts of interest and from industry and bipartisan lawmakers seeking clearer rules that do not restrict developers or innovation.

If the two committee drafts are merged and approved by the Senate, the CLARITY Act would create a federal framework defining custody, consumer protections and enforcement powers for digital assets. Lawmakers will decide in the coming weeks whether the negotiated text has enough support to move forward.