Tillis and Gallego Reach New Ground on Crypto Limits in Clarity Act

Senators Thom Tillis and Ruben Gallego have made progress on revamping the part of the Digital Asset Market Clarity Act that limits government officials from direct ties to cryptocurrency projects, according to people briefed on the effort.

The initial job is done to strengthen this provision, which has President Donald Trump's crypto business empire in mind. The White House hailed his agreement to accept a narrow version of this concept as an unprecedented ethics constraint, but Democratic opponents argued it was structured in such a way that Trump wouldn't have to do much to comply.

Crypto industry lobbyists are eagerly watching the result, as time is running out before the Senate breaks for its August recess. The government conflicts-of-interest section has drawn the brightest spotlight, and the insistence among DeFi advocates that the bill shield developers from being treated as regulated money transmitters remains a point of debate.

The American Bankers Association has been lobbying again on the stablecoin yield topic, insisting that the compromise version didn't get the job done. The White House's crypto adviser, Patrick Witt, expressed frustration with the lack of progress and said there was still time to make it happen in the closing days until August 7.