- Ethics provisions remain the main obstacle as senators negotiate final CLARITY Act language ahead of a possible July vote.
- Law enforcement support for the BRCA remains mixed, with several organizations still withholding formal endorsement.
- Senator Ron Wyden urged Senate leaders to retain BRCA protections for non-custodial blockchain software developers.
The Senate could take up the Clarity Act later this month, yet negotiations remain unfinished as lawmakers prepare to return from the July 4 recess. According to Crypto In America, discussions continue around ethics provisions and the Blockchain Regulatory Certainty Act (BRCA), while Senator Cynthia Lummis had expected updated compromise text during the recess before a possible floor vote.
Ethics Talks Remain The Biggest Hurdle
However, revised legislative text has not appeared despite Cynthia Lummis previously saying stakeholders would receive updated language during the recess. As a result, attention has shifted toward unresolved negotiations before senators return next week.
According to Crypto In America, several industry participants believe ethics language remains the central issue holding up the legislation. They argued that resolving ethics concerns could ease negotiations over other disputed sections.
Earlier discussions collapsed after Senate Republicans and White House officials withdrew support for a proposal involving state attorneys general. That proposal would have allowed states to sue the Department of Justice over enforcement failures involving conflicts of interest.
Lummis later suggested allowing state attorneys general to sue exchanges that list tokens issued by government officials. However, Democrats have not publicly indicated whether that alternative would gain support.
Law Enforcement Views Shape Senate Negotiations
Meanwhile, discussions have continued between Trump administration officials and law enforcement organizations over the BRCA. The provision remains one of the most closely watched sections of the bill.
According to Crypto In America, the National Organization of Black Law Enforcement Executives endorsed the legislation. Meanwhile, the Major County Sheriffs of America changed its position from opposing the bill to remaining neutral.
However, the National Sheriffs’ Association, National Association of Police Organizations, and the Fraternal Order of Police have not announced support. Their positions remain under close watch as negotiations continue.
Senators Catherine Cortez Masto and Mark Warner have indicated law enforcement concerns must receive adequate attention before they support the legislation.
Wyden Backs BRCA As Floor Vote Awaits
Meanwhile, Senator Ron Wyden urged Senate leaders to preserve the BRCA language approved by the Senate Banking Committee. Wyden and Lummis introduced the standalone measure in January.
Wyden said the provision would confirm that non-custodial software developers should not qualify as money transmitters solely for publishing software. He also said the Department of Justice and FinCEN would retain authority to pursue illegal activity.
However, Wyden’s position on the broader Clarity Act remains uncertain after opposing both the GENIUS Act and the resolution overturning the IRS DeFi broker rule. Meanwhile, Senator Thom Tillis has also said ethics language must remain part of the legislation before he supports it.
