CLARITY Act Faces Uncertain Future Amid Senate Disagreements
The CLARITY Act, a bipartisan bill aiming to regulate digital assets in the US, is facing an uncertain future as Senate negotiators warn of potential defeat. The bill's fate hangs in the balance due to disagreements over ethics rules governing public officials' crypto interests.
Senator Thom Tillis, a key Republican negotiator, stated that the legislation 'will fail' unless the White House resolves the ethics dispute related to President Donald Trump's and his family's crypto activities. Another Republican senator, Mike Rounds, shared a similar pessimistic outlook, saying the current situation 'does not look good right now.'
The Senate is scheduled to hold a cloture vote on September 15 at 2:15 p.m. ET, requiring a bipartisan coalition of at least seven Democrats or independents to support the motion alongside Republicans' 53 seats.
The dispute revolves around how Congress should prevent elected officials from financially benefiting from the crypto sector they regulate. The current compromise would allow state attorneys general to enforce restrictions on public officials issuing or sponsoring digital assets and require Trump to divest crypto-related holdings, but the White House has not accepted this proposal.