Key facts
- Bipartisan negotiations on the Clarity Act's ethics rules have begun.
- Senator Kirsten Gillibrand is facing criticism from progressive groups over alleged conflicts of interest due to her ties to the crypto industry.
- Her son's crypto firm, American Perpetuals Exchange Corp, is seeking regulatory approval for crypto perpetual futures contracts.
- The Clarity Act requires 60 votes to pass the Senate.
- The probability of the Clarity Act becoming law in 2026 has surpassed 50%.
Bipartisan negotiations on ethics rules for the Clarity Act have intensified, following an agreement on ethics provisions involving President Trump. However, Democratic Senator Kirsten Gillibrand is facing significant backlash from progressive groups like Indivisible and Demand Progress over her perceived crypto ties.
These progressive organizations have voiced concerns that Gillibrand's efforts to compromise on the Clarity Act's ethics rules are undermined by potential conflicts of interest. Their criticism is particularly focused on her son, Theodore Gillibrand, and his new crypto firm, American Perpetuals Exchange Corp (APAC). APAC has reportedly raised millions from investors, including Ripple co-founder Chris Larsen, and plans to offer crypto perpetual futures contracts, seeking approval from the Commodity Futures Trading Commission (CFTC). Representatives from APAC have also met with staff from the SEC-CFTC Harmonization Initiative.
The progressive groups argue that these circumstances mirror the conflicts of interest they accuse President Trump of exploiting, adding complexity to the delicate negotiations. Meanwhile, White House, Senator Cynthia Lummis, and Bernie Moreno have reached an agreement on the ethics provision. However, Republican lead negotiator Senator Thom Tillis indicated that the ethics agreement is 'not quite there,' suggesting that the negotiations may be prolonged. The Clarity Act requires 60 votes to pass the Senate, and the ongoing challenges, including the scrutiny of Senator Gillibrand's crypto connections, could delay a Senate vote. Despite these hurdles, the odds of the Clarity Act being signed into law in 2026 have increased to over 50% for the first time in weeks, following comments from Coinbase Vice Chair Ryan VanGrack and Treasury Secretary Scott Bessent.