Ethics, Ethics Everywhere, And Not a Single Vote to Spare 🏛️

Bipartisan lawmakers met on Capitol Hill on Monday to negotiate ethics provisions in the Digital Asset Market Clarity Act, with decentralized finance rules also on the agenda. According to crypto journalist Eleanor Terrett, ethics remained the primary hurdle in the talks, though negotiators were also weighing additional DeFi provisions. Terrett reported on X that "Bipartisan discussions are taking place on Capitol Hill today relating to ethics, I'm told. Negotiators are also discussing DeFi provisions, but ethics remains the primary hurdle."

A spokesperson for Senator Cynthia Lummis said the ethics text expected in the coming days would reflect last week's White House meeting, which a White House spokeswoman described as having "went well." The negotiations moved forward after President Trump agreed to ethics provisions, allowing the Clarity Act to enter its bipartisan phase. Lawmakers have continued parallel discussions on customer protection measures.

Democratic Senator Kirsten Gillibrand, chair of the Democratic Senatorial Campaign Committee, faced criticism from progressive groups including Indivisible and Demand Progress over her role in the ethics compromise talks. The organizations sent a letter to every Democratic Senate office flagging concerns about Gillibrand's crypto ties and her son's new crypto venture, Axios reported. The letter described her as "a prime example of a Democratic leader whose" involvement raised questions among Democrats at the negotiating table.

Despite the backlash, the odds of the Clarity Act advancing improved as bipartisan engagement on ethics rules intensified. Negotiators have not announced a timeline for releasing the ethics text, and talks on customer protections alongside the DeFi provisions remain ongoing on Capitol Hill.