CLARITY Act Stalls in Congress After Committee Approval Over Two Disputes

Committee Passage Followed by Deadlock

The CLARITY Act advanced out of committee but has stalled on the broader floor as two unrelated amendments created a standoff between Republicans and Democrats. One amendment would require disclosure of Trump's cryptocurrency holdings as part of ethics filings; the other would expand liability protections for software developers who build financial protocols. Neither group is willing to proceed without their priority amendment attached.

The Trump Holdings Amendment

Democrats have tied a transparency requirement to the bill, seeking to mandate disclosure of cryptocurrency wealth held by senior officials, including the former president. Proponents argue such disclosure is consistent with existing ethics-in-government rules. Republicans characterize the amendment as a political attack unrelated to the substance of CLARITY Act and have blocked floor consideration while it remains attached.

The Developer Liability Question

Republicans, meanwhile, have sought to add language that would limit civil liability for developers of open-source protocols and financial software. Democrats argue the language is too broad and would shield bad actors from accountability, while Republicans maintain narrow protections are necessary to prevent frivolous litigation that chills innovation. With each side treating its amendment as non-negotiable, the bill remains in legislative limbo.

Why It Matters

For Traders

CLARITY Act passage would provide regulatory clarity on digital assets and stablecoin issuance; delays reduce near-term probability of framework codification.

For Investors

Stalled crypto legislation signals a fractured Congress and raises uncertainty around the timing of any comprehensive digital-asset regulatory framework.

For Builders

Competing amendments on developer liability will shape the legal surface for protocol teams depending on which version eventually passes, if any.