Senator Lummis: CLARITY Act's ethics fight isn't over

The fight over the CLARITY Act's ethics rules isn't over. Republican Senator Cynthia Lummis of Wyoming told CoinDesk that the ethics provisions and other disputed language in the bill will be discussed further — this just days after she unveiled an updated CLARITY Act draft with new restrictions on federal officials.

The Republican Position: State Lawsuits Are a Red Line

The main unresolved question is whether state attorneys general should get the power to bring criminal or private lawsuits against officials who violate the bill's ethics rules. For Senate Republicans, that turned out to be a non-starter.

“That was a bright red line for a lot of U.S. senators who did not want to subject themselves to being sued by a different state attorney general.”

— Cynthia Lummis (R-WY), July 22, 2026

Quote source: CoinDesk, July 22, 2026.

“That was also true of the White House, which has been subject to multiple lawsuits and prosecutions by state attorneys general.”

— Cynthia Lummis (R-WY), July 22, 2026

Quote source: CoinDesk, July 22, 2026.

As a compromise, one alternative under discussion would let states sue crypto exchanges that list assets issued in violation of the ethics rules, instead of suing officials directly. The restrictions themselves cover the president, every member of Congress, senior federal judges — from district courts up to the Supreme Court — and their spouses.

The Democratic Position: the Bill Protects Trump

Democrats are far more skeptical. Senator Elizabeth Warren has argued the proposed framework falls short, saying the policy would let President Donald Trump continue running his crypto businesses largely untouched, with any improper activity ignored by his own Department of Justice and shielded after he leaves office. We collected more real quotes from senators on both sides of the CLARITY Act debate in a separate piece.

What Happens Next

According to Lummis, discussion of the ethics provision is likely to continue through the weekend, alongside a few other disputed issues in the bill. Democrats haven't yet backed the updated text, and their votes are exactly what's needed to reach the 60 required in the Senate. The detail is directly tied to the president's own interests: Trump's crypto holdings include a company issuing a memecoin bearing his name and a separate stablecoin issuer — meaning the exact wording of the ethics provision determines how protected those assets remain once he leaves office.

This article is for informational purposes only and does not constitute investment advice.