Senate Democrats have dismissed the latest ethics rewrite of the Clarity Act as unserious, while Majority Leader John Thune conceded Thursday that the crypto market-structure bill is unlikely to clear the Senate before the August recess. The twin developments throw the legislation's path into question just 14 days before a self-imposed deadline of August 7.

Senator Ruben Gallego of Arizona did not mince words when describing the GOP-drafted ethics provision. "Whatever piece of s--t they sent back to us, that was not a serious effort," Gallego told Politico, accusing Republicans of turning months of bipartisan talks into language far removed from a compromise. He said he is preparing a counteroffer with Senator Thom Tillis of North Carolina "and other Republicans that are not being named right now." Gallego added, "We are still in this fight. We are going to send back language.

The ethics dispute centers on enforcement. Democrats have refused to accept a provision that designates the Department of Justice as the sole enforcer, pointing to a fundamental distrust of the Trump Justice Department to police the presidency. Earlier rounds of negotiations broke down over whether state attorneys general would have a role in enforcement, and that impasse has resurfaced in the current draft.

The GOP language originated from an agreement between the White House and Republican Senators Cynthia Lummis and Bernie Moreno. Lummis defended the text, stating that "President Trump is supporting the most robust ethics rules ever imposed on the office of the presidency." The draft would bar federal officials from issuing digital assets and would sunset in 2029. The White House has pressed Democrats to accept it.

Tillis called the White House-approved language "good" but acknowledged that "the baseline… falls short of what some of the Democrats want," and confirmed that at least one more round of talks with the White House lies ahead.