In a significant development, US Democratic senators have introduced multiple amendments to the cryptocurrency legislation, known as the CLARITY Act. These changes, proposed on Friday, are aimed at addressing conflicts of interest concerning officials profiting from the crypto sector. The Senate is gearing up for a crucial markup session scheduled for next week.
Among the most controversial of these proposals is the “Digital Asset Ethics Act,” championed by Senator Michael Bennet of Colorado. This amendment would prohibit top government officials—including the President, Vice President, and members of Congress—from engaging in specific financial transactions related to cryptocurrencies. Such measures are particularly relevant given concerns surrounding the financial interests of former President Trump and his family in the digital asset space.
According to Bloomberg, Trump”s earnings from crypto ventures are estimated at around $1.4 billion, largely attributed to his involvement with the DeFi and stablecoin initiative, World Liberty Financial. Furthermore, his family reportedly holds a 20% stake in the mining company American Bitcoin.
In addition to the ethics provisions, lawmakers have proposed amendments to tackle fraudulent activities at digital asset kiosks. Senator Amy Klobuchar from Minnesota has suggested delaying the crypto bill until at least four commissioners of the Commodity Futures Trading Commission (CFTC) are confirmed. Currently, the CFTC has just one commissioner, Chair Michael Selig, out of a potential five, with political party representation restrictions complicating the confirmation process.
The divide between Republicans and Democrats over fundamental policy issues in the bill remains sharp. Senator John Boozman, the Republican chair of the Senate Agriculture Committee, acknowledged the collaborative effort to refine the legislation. For the bill to pass, it will require bipartisan support, necessitating at least seven Democratic votes along with unanimous Republican backing.
Despite the existing divisions, Senator Kirsten Gillibrand from New York expressed optimism about the progress of the committee”s crypto legislation. She noted that intense bipartisan discussions have been ongoing for six months, resulting in two distinct bills: one under the jurisdiction of the Agriculture Committee regarding the CFTC, and another under the Banking Committee focusing on the SEC and banking regulations. Although not a member of the Agriculture Committee, Gillibrand has actively participated in negotiations surrounding the legislation.
However, the markup hearing for the Banking Committee”s draft legislation, initially set for January 15, faced last-minute delays due to opposition from notable crypto firms such as Coinbase. When questioned about the potential for similar delays affecting the Agriculture Committee”s hearing, Gillibrand maintained a hopeful outlook, anticipating that the markup will proceed as planned.
She also encouraged her fellow senators to revisit bipartisan compromises that had been made in earlier drafts of the bill and were later removed, emphasizing the importance of collaboration in the legislative process.
