Trump Obstacle Overcome in Crypto Bill: Critical Race Against Time in the Senate Before Recess

A bipartisan group in the U.S. Senate has taken a step that will change the fate of the legislation by reaching a new compromise on the ethics clause, the biggest hurdle facing the Clarity Act crypto market regulation.

Senators Thom Tillis and Ruben Gallego have managed to find common ground on the ethics regulations that have long stalled the bill’s progress. The newly prepared draft text aims to prohibit high-ranking government officials from having direct ties to cryptocurrency projects. This move has caused a significant stir in the political arena, as it could directly impact the business activities of Donald Trump, who has his own crypto ventures.

Donald Trump had previously shown surprising flexibility by accepting a narrower version of these restrictions. However, Democrats demanded tougher measures, arguing that the existing structure would be ineffective against a Department of Justice led by Trump’s loyal appointees. The approval of the new language agreed upon by Tillis and Gallego from both the White House and the Democratic wing could tip the final domino for the bill to reach the Senate floor.

Critical Race Against Time Before the August Recess

With only a few days left before the Senate enters its August recess, time is running out for the Clarity Act. Answering questions from the press and conducting intense diplomatic efforts in the Senate corridors, senators are virtually racing against time to secure the 60 votes needed for the bill to pass. Senate Majority Leader John Thune noted that completing the bill before the recess would be difficult due to the tight schedule, but initiating the procedure to end debates, known as cloture, could accelerate the process.

Crypto industry lobbyists believe that untangling this knot in the ethics clause will create significant momentum for the rest of the bill. If the cloture process is initiated within this week, the legislation could be on the path to becoming law before the election intensity of September. Industry representatives emphasized that there is “one final step” remaining regarding the establishment of clear rules, as all eyes turn to the moves the Senate will make over the next seven days.