More Hitchhikers for the US Bullish Cryptocurrency Law Clarity Act: “No Agreement Reached!” What Happens Next?

The Clarity Act, one of the most important legislative bills regarding cryptocurrency regulation in the US, is nearing its conclusion.

At this point, bipartisan negotiations on the Clarity Act, also known as the Transparency Act, have failed. However, it seems likely that Republicans will be able to push the bill forward on their own.

Crypto in America host Eleanor Terrett stated in a post from her X account that the Senate Banking Committee’s bipartisan negotiations on the CLARITY Act ended without an agreement.

Accordingly, negotiations among minority senators to secure Democratic support ended without a final agreement.

Terrett wrote that the main topics discussed in these meetings were the conflict of interest related to cryptocurrency involving President Donald Trump and his family, and provisions related to the Blockchain Regulatory Transparency Act (BRCA).

Democratic lawmakers, including Senators Adam Schiff and Ruben Gallego, reportedly demanded that provisions be added to prevent conflicts of interest regarding the President’s family’s virtual assets as a condition for supporting the bill.

Democrats are also filing last-minute objections to the Blockchain Regulatory Certainty Act (BRCA), which expands liability exemptions for unsupervised software developers.

Terrett stated that while significant progress had been made on ethical issues, disagreements over BRCA were preventing a final agreement on CLARITY.

“Although discussions regarding conflicts of interest had progressed significantly, last-minute disagreements over the BRCA amendments were the decisive factor in the failure to reach an agreement.”

Consequently, the committee vote is expected to proceed with only Republican support. Regarding the negotiations, Senator Cynthia Lummis stated that 99% of the bill has been approved.

Lummis expressed hope that the remaining 1% could be resolved once the bill passed the committee, warning that otherwise lawmakers would be held accountable for future FTX-like incidents.

*This is not investment advice.