CLARITY Act's Final Deal Crumbling as Senate Vote Looms

The CLARITY Act's final deal is already breaking down as it faces opposition from banks, Democrats, state attorneys general, and developer advocates just hours before tomorrow's Senate vote.

Oponents argue that key compromises in the bill do not go far enough to address their concerns. For example, banking groups say that new protections against deposit flight would act too late, while Democrats challenge the strength of ethics restrictions involving President Donald Trump.

The latest text requires covered federal officials with substantial crypto-related financial interests to divest those holdings or place them in qualified blind trusts and gives state attorneys general a role in enforcing some restrictions. However, staff for Sen. Elizabeth Warren argue that the state enforcement power is weaker than Republicans portray.

Beyond Democrats' opposition, New York Attorney General Letitia James led a bipartisan coalition of 17 other attorneys general opposing the bill over its impact on state enforcement.