In a significant development within the cryptocurrency regulatory landscape, U.S. senators have proposed amendments to the ongoing legislation known as the CLARITY Act. These changes aim to address pressing concerns regarding potential conflicts of interest and to enhance the integrity of digital asset transactions.
On Friday, lawmakers from both parties submitted several amendments to the pending bill, which is scheduled for discussion in the Senate Agricultural Committee next week. Among these proposals is the “Digital Asset Ethics Act,” introduced by Sen. Michael Bennet of Colorado, targeting financial transactions involving top officials, including the President, Vice President, and members of Congress. This amendment seeks to prevent these officials from engaging in certain crypto-related financial activities, amid concerns about the involvement of former President Trump and his family in the crypto market.
Reports indicate that Trump”s earnings linked to cryptocurrency are estimated at around $1.4 billion, largely attributed to his association with the decentralized finance (DeFi) and stablecoin project, World Liberty Financial. Additionally, his family holds a 20% stake in American Bitcoin, a mining company. Lawmakers aim to reduce the potential for conflicts that could arise from such financial ties.
Another critical focus of the proposed amendments is to combat fraudulent activities occurring at digital asset kiosks. Sen. Amy Klobuchar, a member of the Democratic Party, has suggested delaying further progress on the crypto bill until at least four commissioners of the Commodity Futures Trading Commission (CFTC) are confirmed. Currently, the CFTC is operating with only one commissioner, Chair Michael Selig, which has raised concerns about its ability to effectively regulate the industry.
The ongoing debate reflects broader divisions among Republicans and Democrats regarding fundamental aspects of the bill. Sen. John Boozman, the chair of the Senate Agriculture Committee, acknowledged these differences yet expressed appreciation for the collaborative efforts aimed at refining the legislation. The passage of the crypto structure bill in the Senate hinges on gaining at least 60 votes, necessitating support from a minimum of seven Democrats alongside a unified Republican backing.
Despite the lack of a consensus, Sen. Kirsten Gillibrand remains optimistic about the future of the crypto market structure bills. She noted that senators have engaged in intense bipartisan negotiations over the past six months, resulting in two distinct bills: one under the Agriculture Committee, which oversees the CFTC, and the other still being debated by the Banking Committee, responsible for SEC and banking regulations.
While acknowledging the recent delays concerning the markup hearing of the Senate Banking Committee”s draft, Gillibrand believes that the Agriculture Committee”s markup will proceed as planned. She emphasized the importance of revisiting earlier bipartisan compromises that were excluded from the latest draft, advocating for a return to those agreements to enhance the legislation”s effectiveness.
