The fate of the CLARITY Act, a major cryptocurrency regulation bill, could be decided this weekend when the White House reviews a new bipartisan ethics proposal. The legislation has been long awaited by crypto advocates who see it as a way to clarify regulatory authority in the US crypto market.
Journalist Eleanor Terrett reports the Trump administration is weighing a counter-offer crafted by Senators Thom Tillis and Ruben Gallego. This plan would empower state attorneys general to take legal action against federal officials if the Justice Department fails to enforce ethics and conflict-of-interest rules. The Democrats pushed for this move, concerned that relying solely on the Justice Department, currently led by the Trump administration, wouldn’t provide enough oversight.
Key Points Holding Up the Bill
The original draft, which the White House backed, faced criticism for granting the Justice Department enforcement power and for allowing some restrictions to expire by January 2029. If the new proposal gains approval, the Senate could move forward with a vote on the CLARITY Act. But the bill still needs the support of 60 senators to clear a procedural hurdle and that level of backing has not yet materialized.
The CLARITY Act already passed the Senate Banking Committee 15-9. It aims to set clear boundaries for SEC and CFTC authority over crypto assets while establishing a coherent regulatory approach for the industry. The bill’s provisions also touch on how stablecoin yields are settled and offer legal protections to software developers who don’t provide custody services.
Stablecoin Compromise and Market Impact
The legislation limits interest-like payouts just for holding tokens but permits rewards connected to transactions, payments, loyalty programs, or platform use. This strikes a compromise between concerns from banks about deposit outflows and demands from crypto companies for flexible reward mechanisms.
material is for informational purposes, not financial advice
