Senate negotiations on the CLARITY Act’s ethics provisions hit a wall. Senator Angela Alsobrooks told former Fox Business journalist Eleanor Terrett that the White House’s proposal to have the Department of Justice enforce the bill’s ethics provisions is an “unserious offer.” She said she would not support the bill if DOJ enforcement remains the only option.
Senator Bernie Moreno, working alongside Senator Lummis to secure an ethics agreement with the White House, told reporters that the current proposal places the DOJ in charge of enforcement rather than state attorneys general. The rejection lands at a critical moment.
🚨NEW: @Sen_Alsobrooks tells me the White House’s idea to have the Department of Justice enforce the Clarity Act’s ethics provisions is an “unserious offer” and says she would not support the bill if that is the only enforcement option.
Senator @berniemoreno, who has been… https://t.co/XLZ2Nsm9Pc
— Eleanor Terrett (@EleanorTerrett) July 21, 2026
Where Negotiations Stand
Terrett had previously reported that bipartisan discussions on ethics were active on Capitol Hill, with DeFi provisions also on the table. A spokesperson for Senator Lummis said last week’s conversation with the White House went well and that ethics text would be released “in the coming days.” Alsobrooks’s response makes clear that what emerged did not meet her standard.
Despite rejecting the current proposal, Alsobrooks is not withdrawing entirely. “But we’ll keep working from that floor to reach an agreement that holds us all accountable,” she said.
The Importance of the Enforcement Mechanism
Alsobrooks is one of two Democratic senators who voted to advance the CLARITY Act out of the Senate Banking Committee in May. Her support is not optional. The bill needs 60 votes on the Senate floor, and with at least two Republicans expected to vote no, Democrats are essential.
The DOJ enforcement model gives the executive branch control over prosecuting violations by executive branch officials. Democrats want state attorneys general instead, who operate outside federal executive authority and cannot be directed by the White House.
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The White House has previously signaled it will not accept ethics language that singles out the president’s personal holdings. Finding enforcement language that satisfies both sides is the last major obstacle to the bill and floor vote.
What This Means for XRP Holders
The Senate’s August 7 recess is fast approaching, and no floor vote has been scheduled. Every day without a deal shrinks the window further. While XRP has regulatory clarity, the bill will cement its status in federal law, and market participants are eager to see this happen.
Senator Lummis has warned that failure in 2026 likely means waiting until 2030 to restart the process. The ethics enforcement question is now the deciding issue. If Alsobrooks and the White House find common ground, the bill advances. XRP holders are watching this negotiation as closely as any price chart.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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