Senate Crypto Bill Stalls Over Ethics Disputes and Illicit Finance Provisions

The U.S. Senate's crypto market structure legislation, known as the CLARITY Act, appears to be stalled due to ongoing disputes over ethics language and illicit finance provisions.

Senate Majority Leader John Thune (R-SD) stated that a vote on the bill 'ain't gonna happen' by August 7, the final sitting day before the Senate's month-long summer holiday. The complex Senate rules regarding timing and procedure ahead of Senate votes have led to delays in passing the legislation.

The main sticking point is the 'ethics' issue, where Democrats want to limit President Trump's ability to make major bank off crypto ventures. The bipartisan negotiations over this primary sticking point could produce revised ethics language to send to the White House for consideration in the 'next couple days.'

New York Attorney General (NYAG) Letitia James testified at a public hearing, stating that CLARITY would 'reduce the number of cops on the beat by restricting state and local law enforcement' and 'seeks to interfere with and pre-empt states' investor protection laws.' The FOP has expressed support for the revised illicit finance text, but not all lawmen or lawwomen are pleased.