CLARITY Act Hits Senate Deadline as Bipartisan Efforts Gain Momentum
The CLARITY Act is facing its final test in the Senate before lawmakers leave for their August recess. According to Cody Carbone, CEO of The Digital Chamber, full passage this week was never a realistic expectation.
Carbone notes that Senators Thom Tillis and Ruben Gallego have helped prepare new bipartisan ethics language for the White House, which targets concerns about President Donald Trump profiting from digital assets while in office.
The bill seeks federal rules for digital assets and clearer divisions between the SEC and CFTC. However, two main requirements are still dominating the negotiation process: Democrats want to grant enforcement power to state attorneys general, not just the US attorney general, and they require President Trump to sell his profits in cryptocurrencies.
Carbone considers this bill the basis of digital asset policy in the United States, and further progress depends on the reaction of the White House and Democratic votes. An agreement would provide too little time to go through all the legislative stages prior to the recess until August 7.