Senate Majority Leader Chuck Schumer has scheduled a meeting for Democratic caucus members on Sunday evening to deliberate on the proposed bill, according to reports from Politico.
- Members will have the opportunity to suggest amendments once the bill is addressed.
- Former President Trump reportedly consulted with his advisors on Friday regarding the bill’s ethics provisions, which remain a significant point of contention in ongoing discussions, as per Politico.
- A Senate vote is planned for Tuesday and requires a total of 60 votes. With Republicans holding 53 seats, lawmakers have only one day to finalize their positions before the vote.
Senator Bernie Moreno (R-OH) is advocating for progress on the Digital Asset Market Clarity Act (known as the CLARITY Act), asserting that the upcoming vote is merely a procedural measure that would pave the way for future amendments, not the final approval of the cryptocurrency market structure legislation. This appeal is made as Democrats prepare for their caucus meeting just days before the scheduled vote.
In a statement on X, Moreno emphasized, “This is not a vote on final approval.” He mentioned that extensive effort had gone into drafting the framework, with numerous Senators involved in the process. He noted that the bill had passed through the committee with bipartisan support and had already been approved by the House. However, the motion for cloture on the CLARITY Act is set for Tuesday.
Moreno cautioned that a “no” vote on Tuesday would amount to more than rejecting a specific aspect; it would effectively prevent an entire industry from operating transparently within the US. “It risks allowing this industry to flourish without guidelines and instead develop overseas.” He stated that Senators still grappling with concerns may propose amendments once the Senate agrees to take up the bill, underscoring the intended functionality of the legislative process.
Trump Addresses Ethics Concerns Before Senate Vote
Former President Donald Trump reportedly held discussions with advisors on Friday to review the ethics language included in the CLARITY Act, as reported by Politico, based on information from unnamed sources privy to the private conversations. The White House and Senate negotiators have yet to disclose the outcomes of these discussions.
Additionally, Politico noted that Chuck Schumer (D-NY) has arranged a caucus gathering for Democrats on Sunday to go over the bill.
The timing is critical since Tuesday marks the initial evaluation of the crypto market structure legislation on the Senate floor. The ethics section that Trump focused on has been a major hurdle in negotiations for several months.
Controversial Ethics Section of the Bill
The ethical stipulations are outlined in Division C of the Senate text, including sections 30101 through 30106. Section 30101 prohibits certain officials and their spouses from issuing or promoting a digital asset while serving in office, and platforms cannot list any asset that violates these regulations.
While officials may retain existing cryptocurrency holdings, they are permitted to sell them or place them in an independently managed trust. Oversight relies solely on the Attorney General, with penalties capped at either 10% of the earnings or $500,000, whichever amount is lesser.
Reports indicate that several Democrats have voiced concerns regarding various elements of this section, arguing that the language lacks sufficient strength. They cite issues such as the expiration date, the role of the Justice Department, and the absence of protections for children mentioned in the ethical guidelines.
CLARITY Act Moves Toward Voting
Senator Cynthia Lummis (R-WY) recently released an updated draft that she claims includes over 114 modifications requested by Democrats, addressing areas like decentralized finance (DeFi) and credit unions.
Earlier in the week, Senator Thom Tillis (R-NC) warned that the legislation might fail its upcoming vote without support from the White House regarding the ethics language. However, Division C remained unchanged. For the CLARITY Act to pass through the procedural barrier, it requires 60 votes in the Senate. Republicans hold 53 seats, and with the Senate reconvening on Monday, lawmakers have one last working day before the vote.
Circle Internet Group (CRCL) and Coinbase (COIN) are poised to benefit significantly from the bill’s passage. On Stocktwits, retail sentiment surrounding CRCL and COIN has remained in the ‘extremely bearish’ and ‘bearish’ categories over the past day.
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