The CLARITY Act Standoff: Why Ethics Rules Are Blocking US Crypto Legislation

The long-awaited US Digital Asset Market Clarity Act (CLARITY) has hit a major roadblock that threatens its passage. While both parties express support for crypto market structure legislation, a fierce dispute over ethics rules and enforcement authority has emerged as the primary dealbreaker.
This ethical deadlock, following thousands of hours of negotiation, could fundamentally reshape how digital assets are governed in the United States. The outcome of this struggle over a code of conduct will dictate the regulatory landscape for the entire crypto industry and the power dynamics of federal oversight.
After months of negotiations and what Coinbase’s chief executive Brian Armstrong called “thousands of hours of work on both sides,” disagreement over a code of conduct could make or break CLARITY once and for all.
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