Senate Republicans are getting ready to release a new draft of the CLARITY Act, a major cryptocurrency market structure bill, even though Senate Democrats still oppose it over ethics rules related to President Donald Trump’s crypto business interests. Republicans plan to publish the updated text after meeting with President Trump, but Democrats say the latest version does not have strong enough ethics safeguards or consumer protections. This disagreement has created new uncertainty about whether the bill will move forward before Congress’s August recess.
The CLARITY Act has been in negotiation for almost a year and is seen as a major effort to create a clear regulatory framework for the US digital asset industry. The bill aims to clarify how cryptocurrencies should be regulated and outline the roles of different federal agencies in overseeing the sector.
Political divisions are still slowing progress. One of the main issues is the ethics language in the bill. Democrats argue that stronger safeguards are needed to prevent conflicts of interest related to President Trump’s business ties to the cryptocurrency industry.
Reports say Sen. Bernie Moreno stated the revised bill will be released after lawmakers brief President Trump. He wants to bring the bill to a Senate vote before the August recess, saying it’s time for lawmakers to move forward.
Democrats are still not convinced. Sen. Ruben Gallego, a lead negotiator, criticized the Republican proposal, saying the ethics rules sent to the White House are much weaker than what Democrats wanted. He also said the draft does not offer enough consumer protections.
A Democratic Senate aide confirmed that the latest Republican proposal does not meet what Democratic lawmakers would support, showing that there is still no bipartisan agreement on the current draft.
Sen. Cynthia Lummis, a long-time supporter of crypto legislation, is hopeful that the updated draft will be released soon after talks with President Trump. Sen. Cory Booker, who has worked on the Commodity Futures Trading Commission’s role in the bill, emphasized that bipartisan cooperation is still needed for the legislation to pass.
These developments come as more investors, exchanges, and financial institutions look for clearer US crypto regulations. A clear market structure is seen as key to encouraging institutional involvement, protecting consumers, and supporting innovation.
Prediction markets now give the CLARITY Act about a 41% chance of passing, showing there is still a lot of uncertainty in the legislative process.
Now, the focus is on the release of the updated draft and whether Republicans will move forward without Democratic support or keep working toward a bipartisan deal. The House Financial Services Committee’s Digital Assets Subcommittee is also planning a field hearing on the bill, making the next few days important for the future of US crypto regulation.
You need to login in order to Like
Leave a comment