Updated language in the CLARITY Act was revealed yesterday in an attempt to sway Democrat members of the Senate to support the legislation. New language covering ethics was added to mollify members who claimed that participation by President Trump needed to be addressed. Unfortunately, it appears that the attempt at appeasement was insufficient, and perhaps Democrats will never be satisfied, and the whole compromise initiative was simply political theatre.
Amanda Fischer, the Policy Director/COO of Better Markets, a left-wing advocacy group targeting markets, described the ethics as laughable.
“Quick analysis of the laughable “ethics” language in this draft: – POTUS can continue to profit from his existing crypto ventures – He has a year plus to put his crypto ownership interests in a blind trust – No restrictions on earning trading fee income or reserve asset income.”
Adding:
“Doesn’t change much at all about Trump’s existing crypto grift. No divestment required. Maybe stops new crypto grifts, but it’s up to his personal attorney Todd Blanche to enforce. Amnesty kicks in as soon as the new POTUS is inaugurated.”
Todd Blanche is the acting Attorney General of the US.
Democrat Senator Elizabeth Warren, a longtime detractor of the digital asset sector, stated:
“The new draft of the Senate GOP crypto bill does nothing to stop President Trump from making his next $1.4 billion from crypto. It’ll supercharge Trump’s crypto corruption. This bill should be dead on arrival.”
Punchbowl News shared a list of seven Senators who will not support the current bill. The Democrat Senators include: Cory Booker, Angela Alsobrooks, Catherine Cortez Masto, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock
Gallego previously supported the bill’s prior version in the Senate Banking Committee, as did Alsobrooks.
“The Republican-proposed text of the CLARITY Act as it currently stands falls short. Key provisions, including those addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity, must be strengthened. We have been working in good faith with our Republican colleagues for the past year and will continue doing so to get this over the finish line.”
Brian Armstrong, CEO of Coinbase (NASDAQ:COIN), took to X to say that the bill should move forward with a floor vote. This will test the Democrats and see who wants to be on the record in failing to support crypto market infrastructure legislation.
“The bill represents a true bipartisan compromise with thousands of hours of work on both sides, and it couldn’t come at a better time. The status quo in the U.S. isn’t working. There’s no federal framework, so bad actors like FTX can harm U.S. customers, and much of the industry has gone offshore, totally outside U.S. purview. This bill fixes that with strong consumer protections, real tools for law enforcement, and a path for America to lead in this industry. Crypto can’t be uninvented at this point, so whether you love crypto or hate crypto, you should want clear federal laws. And it’s also simply good politics: 70% of American voters say the U.S. should have already passed comprehensive crypto legislation.”
Armstrong once warned that if new rules were not adopted, Coinbase would continue to innovate outside the US.
Senate Leader John Thune appears to be ready to bring the legislation to a vote. This could compress the time needed for any negotiations, if Democrats are willing to compromise while also exposing whether they really want to protect consumers while enabling digital asset innovation. To evade a filibuster, 60 senators must support the bill, which means Democrats, who are largely anti-digital asset innovation.
As previously noted, time is running out.