White House Blocks Conflict Of Interest Provision In CLARITY Act
Highlights
- The White House pushed back on the conflict of interest provision after lawmakers on both sides agreed to include it.
- The provision is designed to address senior political figures involvement in crypto including the president, vice president and congress members.
- The CLARITY Act is unlikely to proceed to the House floor for debate until lawmakers work on an amendement.
The White House has reportedly pushed back on a move by both Republican and Democratic representatives to include a provision in the CLARITY Act that will address Donald Trump’s ties to the crypto industry. This comes just days after the crypto bill passed the Committee markup phase.
White House Rejects Bipartisan Provision In CLARITY Act
According to an Unchained report, the White House rejected a provision that lawmakers from both sides had agreed to include to address Democratic concerns about Trump’s involvement in crypto.
Citing a source familiar with the matter, the report revealed that the proposed provision in the CLARITY Act was not just designed for the president, but also to address conflicts of interest among senior political figures while in office. This includes the Vice President, members of Congress, and their family members.
Trump’s involvement in crypto has been a concern for Democratic lawmakers in both the Senate and the House. According to a CoinGape report, President Trump has earned over $1 billion from crypto. These lawmakers, including Senator Elizabeth Warren, claim that his ties to crypto bring about corruption.
Lawmakers from both sides had tried to propose a language in the CLARITY Act that was similar to existing campaign finance and financial disclosure norms so as not to make the provision look like a rebuke of Trump’s crypto activities. However, the White House still rejected the provision and has made it clear that it won’t accept the proposed language.
What’s Next For The Bill
The CLARITY Act just passed the committee markup phase. However, with the White House’s rejection of the conflict of interest provision, Republicans are now at a crossroads. They are looking for a way to appease the Democrats and gain bipartisan support for the bill while avoiding the inclusion of a provision that may look like a rebuke of Donald Trump’s crypto involvement.
According to the report, one source familiar with the matter suggested that negotiations on this provision have paused at the post-markup stage. House Republicans and the White House will proceed to draft potential replacement language to put forward to the Democrats.
The White House is also reportedly pressuring Congress to pass the CLARITY Act and stablecoin bill before the lawmakers go on a recess in July, so that Trump can sign the bills in August.
The stablecoin bill has advanced in the US Senate, with a final passage vote scheduled for June 17. Trump’s involvement in crypto had been the primary reason why the bill failed to pass in May. However, lawmakers on both sides agreed on some amendments that addressed Democratic concerns.
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