Key facts
- U.S. Senators Thom Tillis and Ruben Gallego have finalized a bipartisan ethics counteroffer for the Clarity Act.
- The White House previously rejected proposed changes to the act's developer provisions.
- The Clarity Act faces a tight deadline before the Senate's August recess.
- Key sticking points include ethics provisions, DeFi protections, and stablecoin rewards programs.
- Jack Dorsey's Block urged Senate leaders to bring the Clarity Act to a floor vote.
U.S. Senators Thom Tillis and Ruben Gallego have finalized a bipartisan ethics counteroffer for the Digital Asset Market Clarity Act, aiming to address concerns over cryptocurrency conflict-of-interest provisions for senior government officials. The bill's prospects for passage before the Senate's August recess have diminished, with odds of passing reportedly falling to 27%.
Negotiators are targeting to send the new bipartisan ethics package to the White House by Friday, Senator Tillis confirmed. The White House had previously rejected proposed changes to the act's developer provisions, deeming them not aligned with its position. Key sticking points in the Clarity Act negotiations include the ethics provision, protections for decentralized finance (DeFi), and the allowance of stablecoin rewards programs.
Meanwhile, key Senate Democrats haven’t ruled out voting for a procedural motion next week to begin the Senate’s consideration of the Clarity Act, though a Democratic Senator noted that "there’s a lot that needs to go right before that actually happens." Senate Republicans continue to assert that they are targeting a cloture vote on the Clarity Act next week, despite the Senate prioritizing other bills. Republican Senator Cynthia Lummis expressed frustration with the lack of progress from Democratic colleagues.
Jack Dorsey’s Block sent a letter urging Senate leaders to bring the Clarity Act to a floor vote, calling for regulatory clarity and legal protections for developers and self-custody. The SEC and CFTC are also building a backup plan for U.S. crypto rules as the Clarity Act's passage before the August recess seems difficult.