CLARITY Act Still in Limbo as White House Yet to Sign Off on Ethics Provision

There remains uncertainty around the CLARITY Act and when the crypto bill could hit the Senate floor for a vote. The inclusion of an ethics provision remains the major stumbling block, with the White House reportedly yet to sign off on it.

White House Yet To Sign Off On Ethics Provision In CLARITY Act

According to a Crypto In America report, the White House has yet to sign off on an ethics provision as of today, despite President Trump’s meeting last week with Republican senators about the crypto bill. The report also cited sources who revealed that the White House has not made clear which ethical parameters it would support, which could further delay the release of an updated bill text for the CLARITY Act.

This comes as Democrats continue to push for an ethics provision in the crypto bill to curb the president’s involvement in crypto, especially after his disclosure showed that he earned up to $1.4 billion in crypto income last year. As CoinGape reported, Senator Elizabeth Warren has asked for President Trump’s updated financial disclosure, which she noted is vital as they address ethical concerns in their deliberation on the crypto bill.

Meanwhile, Democrats have reportedly signaled that Republicans have, in recent weeks, largely failed to include them in negotiations over an ethics provision, including last week’s White House meeting. The CLARITY Act is currently facing a race against time before the Senate goes for its August recess.

Senate Majority Leader Major Thune said he wants to schedule a floor vote on the bill before August, but acknowledged they have yet to secure a bipartisan agreement. Amid the uncertainty, the CLARITY Act’s approval odds have slipped to new lows, with data from the top crypto prediction market platform Polymarket showing a 31% chance of Trump signing the bill into law this year.

On The DeFi Provision

The Blockchain Regulatory Certainty Act (BRCA) is another notable issue that has continued to impede the CLARITY Act’s progress. Law enforcement groups have argued that the provision will make it harder to crack down on illicit finance.

The DeFi provision protects developers of decentralized crypto platforms, ensuring they are not liable for users’ activities on their platforms. They are also not considered money transmitters. Blockchain Association CEO Summer Mersinger told Crypto In America that she thinks the BRCA provision will remain intact when the Senate releases an updated text.

As CoinGape reported, the Blockchain Association CEO also predicted that the CLARITY Act floor vote could happen this week. She also expressed optimism that the Senate could get the crypto bill across the finish line despite concerns that the bill won’t get enough support.