Gillibrand demands ethics ban before CLARITY Act vote

Sen. Kirsten Gillibrand is delaying action on the CLARITY Act until lawmakers add an ethics ban that would bar members of Congress, the president, the vice president and senior administration officials from issuing or promoting cryptocurrencies or memecoins. She tied the ethics language to broader fixes aimed at curbing illicit finance and terrorism financing linked to the bill.

In an interview, Gillibrand stated, “We’re trying to make sure there’s ways to crack down on illicit finance and terrorism financing.” She added, “We’re still working on an ethics provision to make sure no members of Congress, the president, the vice president, or any senior administration official can’t be an issuer of a cryptocurrency or memecoin or promote it or advocate for it in any way.”

Gillibrand said the first procedural step is for the Senate Banking Committee to approve its draft, including any last‑minute edits, and then merge that draft with a companion bill being developed by the Senate Agriculture Committee. Negotiators plan to restore earlier bipartisan language after the Agriculture Committee’s version was viewed as partisan and expect to meet in two to four weeks to reconcile differences and produce a single final text.

Supporters of the CLARITY Act say the bill would strengthen consumer protections by requiring segregation of customer funds, increasing transparency, adding anti‑money‑laundering controls, clarifying when money‑transmitter laws apply and giving law enforcement clearer authority. Taylor Barr, government affairs director at The Digital Chamber, and other industry advocates described those provisions as protections for customers and creators that would distinguish custodial services from developers.

The delay drew criticism from some pro‑crypto lawmakers. Senator Cynthia Lummis posted on social media that the additional work is holding up the bill. Betting markets showed continued optimism: Polymarket listed the odds of passage at about 65 percent when Gillibrand spoke. Senators Thom Tillis and Angela Alsobrooks issued a joint statement noting negotiations were moving toward a conclusion.

If the committees reach agreement and file a final bill, the Senate will then decide whether to bring the measure to the floor for a vote. Lawmakers say they want a bipartisan product, and the timing will depend on resolving policy differences between the two committee drafts.