Gallego Slams CLARITY Act Draft as 'Not a Serious Effort'

Democratic Senator Ruben Gallego has slammed the latest draft of the CLARITY Act, calling it 'not a serious effort' after months of bipartisan negotiations. The bill aims to provide regulatory clarity for the US crypto industry, but disagreements over ethics provisions and enforcement have slowed progress.

Gallego is working with Senators Thom Tillis and others on a counterproposal, while Lummis defended the latest draft and Tillis said further changes may be necessary to secure passage. The disagreement has put the bill's timeline in doubt, with Senate Majority Leader John Thune saying it will not pass before lawmakers leave for recess.

Crypto industry leaders have been watching the developments closely, with Coinbase CEO Brian Armstrong warning that parts of his company's business could move overseas if clear crypto legislation is not passed. A proposed compromise has suggested keeping the DOJ as primary enforcer while imposing statutory deadlines and allowing state attorneys general to intervene under limited conditions.