CLARITY Act: Gillibrand Sees Path Forward for Crypto Bill as Democrats Clash Over Presidential Ban

As the United States inches closer to the passage of the much-anticipated CLARITY Act, Senator Kirsten Gillibrand believes that the path forward is simple. She remains optimistic about the market structure bill even as Democrats and Republicans remain divided on a potential ban on presidential crypto activity.

Gillibrand “Very Optimistic” about CLARITY Act

According to a CNBC report, Sen. Kirsten Gillibrand remains highly optimistic about the potential passage of the CLARITY Act. She believes that the updated crypto bill will advance soon. The senator added,

“Senators have been working on a bipartisan basis for the last six months pretty intensely, and we have two different bills…I think both senators on the Banking and Ag committee are working in a bipartisan way and in good faith.”

Gillibrand further stated that the crypto legislation is split between two Senate committees. Reportedly, the Senate Agriculture Committee is set to review and vote on the CLARITY Act on January 27. While the Agricultural Committee is handling the part that falls under the Commodity Futures Trading Commission, the Banking Committee is dealing with the issues connected to the Securities and Exchange Commission and the banking system. She acknowledges this division as a necessity, as cryptocurrencies often blur the line between commodities and securities. This indicates that the sector needs scrutiny from both committees.

After multiple postponements, reports state that the CLARTY Act hearing is likely to be delayed until late February or March. The Senate Banking Committee, which initially scheduled its markup hearing on January 15, postponed it. There are also speculations of a further delay as the US government shutdown deadline nears. 

Democrats Push Ethics Rules Ahead of Committee Vote

Notably, the Senate Agriculture Committee members have introduced a set of proposed amendments to the market structure bill ahead of next week’s vote. They discuss the need for ethical rules, focusing on potential conflicts of interest involving President Donald Trump. Senator Michael Bennet of Colorado put forward the “Digital Asset Ethics Act,” which would potentially ban the president, vice president, and members of Congress from engaging in crypto-related activities.

This amendment aims to address growing concerns among Democrats about President Trump’s crypto ties. His meme coin launch and crypto ventures have sparked heated debate. The rising influence of political meme coins has also raised eyebrows. This comes on the heels of the recent launch of the NYC Token by former New York City Mayor Eric Adams.

As the crypto bill moves forward, Democratic support is a crucial element. 60 votes are needed for the CLARITY Act to pass the Senate. So, Republicans would need the vote of at least seven Democrats to pass the bill. Citing the prevailing disagreements, Senate Agriculture Committee’s Republican Chair, Sen. John Boozman, stated, “Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better.”