Senate Democrats are threatening to withdraw their support for the Clarity Act unless it includes ethics provisions mandating public officials to disclose cryptocurrency holdings and transactions. The disagreement centers on whether these rules should be attached during the Senate Banking Committee's markup or later in the legislative process. Republicans argue the provisions fall outside the committee's jurisdiction, while Democrats, led by Senator Ruben Gallego, insist they must be included at the committee level. The Clarity Act aims to establish a federal regulatory framework for digital assets, addressing issues like cryptocurrency classification and exchange registration. The bill's progress is crucial as it could set a precedent for congressional handling of ethics rules related to digital assets. The Senate Banking Committee is expected to proceed with the bill's markup next week, but if Democrats withdraw support, the legislation could face delays or require renegotiation, impacting U.S. crypto policy and market sentiment.