The US crypto industry got tantalizingly close to regulatory clarity this year. Now it’s watching the whole thing potentially unravel over something that has nothing to do with tokens, exchanges, or blockchain technology: ethics rules.
Josh Riezman, Chief Legal and Strategy Officer at GSR, has flagged unresolved ethics provisions as a primary obstacle preventing the CLARITY Act from advancing. He’s assigned less than 50% odds for the bill’s passage within the current congressional session.
The ethics wall
The CLARITY Act is, on paper, exactly what the digital asset industry has been asking for. It would draw clear jurisdictional lines between the SEC and the CFTC, establish token classification frameworks, and set ground rules for exchanges, custody, and staking arrangements.
Sen. Angela Alsobrooks (D-Md.) stated on June 5 that she will not support the CLARITY Act without a consensus on ethics provisions.
