The bill is one of the biggest efforts yet to create a clear set of rules for the cryptocurrency industry in the US. The Senate is expected to hold a procedural vote on Tuesday on the Digital Asset Market Clarity Act, also known as the Clarity Act.
The Clarity Act is more than 600 pages long and would create the first broad legislative framework specifically for the crypto industry in US history. Trump disclosed that he and his family made about $1.4 billion from their crypto ventures last year, according to a financial disclosure reported by The New York Times. With 60 votes needed, Republicans cannot pass the bill on their own.
Because of Trump’s own crypto businesses, the concern has become bigger.
NPR described it as a possible game changer for the sector, but said the bill faces strong opposition before it can become law. Democrats are mainly worried about conflicts of interest involving politicians. One major dispute is over an ethics provision designed to stop presidents and other elected officials from making money from the crypto industry while they are in office. That has increased concerns among Democrats about whether the proposed ethics rules would be strong enough. Critics still say the new ethics rules have loopholes. They argue that the language around financial interests is not strict enough and could potentially allow the president to avoid some of the restrictions. The crypto industry has been pushing Congress hard to pass the bill. The biggest question is whether Republicans can get enough Democratic support. They need at least seven Democrats or independents to join them. So, will the Clarity Act become law? The answer is still unclear. The bill must first survive the Senate’s procedural vote, then pass further Senate consideration, and finally be reconciled with the House version before it can reach Trump’s desk.
They argue that the bill does not go far enough to prevent elected officials from using their political positions to benefit their own crypto businesses, according to NPR. Sen. Elizabeth Warren and other Democrats say the ethics protections are too weak. Democrats also object to who would enforce the ethics rules. The bill would give the Department of Justice (DOJ) responsibility for enforcing the ethics provision. Democrats question whether the DOJ would act as a strong check on a sitting president.
Even if the bill survives Tuesday, its future remains uncertain. Opposition from Democrats over ethics rules and resistance from banks over stablecoins could continue to slow the legislation. With the midterm elections approaching, lawmakers also have a limited window to reach a final agreement.
