White House Reviews Ethics Amendment Amid Senate Clarity Act Vote

The White House is reviewing a bipartisan ethics amendment ahead of a Senate vote on the Clarity Act. The amendment, sent by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego to the White House, would allow state attorneys general to sue the Justice Department over the federal government's failure to enforce ethics laws.

Another point of contention is the Blockchain Regulatory Certainty Act (BRCA) provision. Treasury Secretary Scott Bessent has written that this provision should explicitly exempt non-custodial developers who do not directly hold assets from registration requirements under the Bank Secrecy Act. He has formally endorsed the BRCA language.

However, some law enforcement groups and Democrats are pushing back against this proposal, arguing that software developers should face stricter anti-money-laundering obligations. A ban on interest payments for stablecoins is another sticking point, with Republicans Mike Rounds and banking lobby groups demanding additional safeguards.

Crypto industry participants and lobbyists are urging the White House and Congress to secure a cloture vote before the Senate goes into recess. A package deal addressing three core issues - the ethics amendment, BRCA provision, and language under the Agriculture Committee's jurisdiction - is seen as necessary to clear the 60-vote threshold.