‘Still working on ethics’ – Crypto market awaits CLARITY Act breakthrough
CLARITY Act delays frustrate lawmakers, even as consumer safeguards and regulatory clarity remain central goals.
Kirsten Gillibrand, a Democrat from New York, has introduced a new hurdle to the CLARITY Act’s approval. In a recent interview with Kailey Leinz on Bloomberg Television, she explained that lawmakers must meet three requirements before the Senate can vote on the bill.
Gillibrand said,
We’re trying to make sure there’s ways to crack down on illicit finance and terrorism financing.
She further added,
We’re still working on an ethics provision to make sure no members of Congress, the president, the vice president, or any senior administration official can’t be an issuer of a cryptocurrency or memecoin or promote it or advocate for it in any way.
Steps ahead before the bill hits the floor
For the bill to move forward, Gillibrand expects the Banking Committee to first approve its draft of the bill, including any last‑minute revisions. Since both committees are working on related aspects of the same legislation, the plan is to merge this draft with the Agriculture Committee’s version.
However, they wish to revive earlier bipartisan ideas that had wider consensus because the Agriculture Committee’s version was partisan. Then, in two to four weeks, everyone will sit to resolve disagreements and combine the two drafts into a single final bill. Once merged, the final version will be sent to the Senate for a vote.
Necessary step or unwanted hurdle?
This seems to be a necessary step before the CLARITY Act gets approved, as the act will improve consumer protection by implementing fund segregation, transparency, and AML protections for digital asset platforms.
Once approved, it will make regulations clearer, give law enforcement more authority, and guarantee that money transmitter laws only apply to custodial entities and not developers.
As Taylor Barr, Government Affairs Director at The Digital Chamber, explained,
However, with such delays, Senator Cynthia Lummis expressed her frustration when she said,
Polymarket odds and more
Notably, the Polymarket odds on the CLARITY Act approval were at 65% at press time. This indicates that the wider crypto audience was still hopeful.
Notably, a joint statement from Senators Thom Tillis and Angela Alsobrooks was released, signaling that the agreement is nearing its conclusion.
Final Summary
- Kirsten Gillibrand pointed out issues to be tackled before the passage of the CLARITY Act.
- The delay frustrates Senator Cynthia Lummis, but the Polymarket odds echo optimism.
