TLDR
- The White House rejected a bipartisan provision in the CLARITY Act addressing conflicts of interest in crypto.
- Lawmakers proposed the provision to regulate the financial ties of political figures, including Donald Trump.
- The clause aimed to mirror existing financial disclosure rules to avoid targeting any specific individual.
- The rejection has paused negotiations and delayed further progress on the CLARITY Act.
- House Republicans are now working to draft alternative language to gain bipartisan support.
The White House has rejected a bipartisan effort to include a conflict of interest measure in the CLARITY Act. Lawmakers aimed to add language addressing financial ties between senior officials and the crypto industry. Despite broad support, the White House refused to back the provision, stalling progress on the measure.
Lawmakers Face Setback Over Trump Crypto Provision
Congressional representatives from both parties supported a clause to regulate crypto interests held by political figures, including Donald Trump. The White House rejected the provision even after lawmakers adjusted the language to avoid targeting specific individuals. This setback has disrupted bipartisan unity around the CLARITY Act.
Democratic lawmakers had expressed concern over former President Trump’s growing involvement in cryptocurrency, citing possible ethical risks. They proposed aligning the new clause with existing financial disclosure laws to ensure fairness. However, the White House did not approve the proposed addition to the CLARITY Act.
Negotiations Pause Following White House Pushback
The White House’s decision has placed Republican lawmakers in a challenging position during ongoing negotiations. To secure bipartisan support, they now seek alternative language for the CLARITY Act that satisfies both sides. Talks on this matter have paused, with both camps reconsidering their next move.
Although the CLARITY Act recently cleared the committee markup phase, the rejected provision complicates its legislative progress. Discussions are ongoing to find an acceptable replacement language before the next round of revisions. Any new proposal must meet White House conditions without alienating Democratic allies.
A source familiar with the situation confirmed that negotiations over the conflict provision remain at a standstill. However, Republican leaders plan to work with the administration to present an updated version. They aim to protect the bill’s chances of success while keeping partisan tensions low.
CLARITY Act and Stablecoin Bill Face Tight Timeline
The White House has urged Congress to pass both the CLARITY Act and the stablecoin bill before the July recess. Officials are pushing to finalize the bills swiftly so that Trump can sign them into law by August. This timeline adds pressure to resolve disagreements surrounding the conflict of interest clause.
The stablecoin bill, which had failed earlier, is now set for a Senate vote on June 17 following revised amendments. Lawmakers adjusted the bill to address Democratic concerns, which previously stalled its progress. This improved version could influence how the CLARITY Act moves forward.
