Summary
- Negotiations are continuing ahead of a U.S. Senate vote on the Clarity Act over ethics rules that would restrict senior public officials’ interests in crypto assets.
- Law enforcement and banks are pushing back against the BRCA provision shielding DeFi developers from liability and against stablecoin interest and rewards programs.
- A policy research firm said the chances of the Clarity Act advancing could fall sharply if the Senate fails to pass it before the August recess.
Forecast Trend Report by Period
The deadline for the U.S. Senate to pass the Clarity Act, a market-structure bill for digital assets, is drawing closer as negotiations continue over several key provisions.
CoinDesk reported on June 23 that the biggest sticking point is a provision restricting senior public officials from having interests in crypto businesses. Democratic Senators Ruben Gallego and Kirsten Gillibrand are in talks with Republicans and White House officials over ethics rules, including concerns tied to President Donald Trump’s connections to crypto ventures.
Other disputes also remain unresolved. They include concerns from Democratic members of the Senate Agriculture Committee, opposition from law enforcement to the BRCA provision that would shield decentralized finance, or DeFi, developers from liability, and resistance from banks to stablecoin interest and rewards programs.
The fight over DeFi rules has emerged as the most difficult issue. Some Democratic lawmakers want to narrow the legal protections for developers. Senator Cynthia Lummis, a Republican aligned with the crypto industry, supports the current draft. “Software developers should not need to hire armies of lawyers to determine whether their code is legal,” she said.
Banks are also pushing back, arguing that stablecoin yield products could eat into the deposit business. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon recently said banks cannot accept the current agreement and would continue to oppose it through the final stages of negotiations.
The industry is targeting a mid-July vote on the Senate floor. Digital Chamber Chief Executive Officer Cody Carbone said industry representatives and lawmakers remain at the negotiating table. Nobody has walked away.
Beacon Policy Advisors said the Senate must pass the Clarity Act before its August recess for the measure to become law this year. If that window is missed, the odds of passage could drop sharply as the midterm election cycle begins.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
