- Ethics provisions remain the primary obstacle as bipartisan senators negotiate final CLARITY Act language.
- Lawmakers and the White House continue working toward a compromise needed to secure 60 Senate votes.
- DeFi provisions are also under discussion, but ethics language remains the central focus of negotiations.
Bipartisan Senate negotiations on the CLARITY Act continued on Capitol Hill on Tuesday, with ethics provisions remaining the biggest unresolved issue. According to journalist Eleanor Terrett, lawmakers also discussed decentralized finance provisions, although ethics language dominated the talks. Negotiators from both parties and the White House continued working toward compromise language needed to secure broader Senate support.
Ethics Language Remains Central Issue
According to Eleanor Terrett, bipartisan discussions focused primarily on ethics provisions, while negotiators also reviewed DeFi-related language. However, ethics remained the main obstacle during Tuesday’s meetings on Capitol Hill.
Terrett reported that Senator Thom Tillis is leading Republican negotiations on the ethics text. Meanwhile, Senator Cynthia Lummis’ office said last week’s discussions with the White House were productive.
A spokesperson for Lummis said the upcoming ethics proposal will reflect those conversations. However, the office did not provide details about the compromise language under development.
According to Axios, Senators Bernie Moreno and Cynthia Lummis continue working with the White House on revised ethics provisions. The report said negotiators have made progress, although the updated language has not been released.
Progressive Groups Target Gillibrand
As negotiations continued, Axios reported that several progressive organizations increased pressure on Senator Kirsten Gillibrand. The groups sent a letter to every Democratic Senate office on Tuesday evening.
Indivisible, Demand Progress, and the Revolving Door Project argued that Gillibrand’s role in the negotiations complicates Democratic criticism of President Donald Trump’s crypto activities. They also pointed to her son’s involvement in the crypto industry.
Gillibrand previously called for elected officials and their spouses to avoid issuing or sponsoring digital assets. In a June statement, she said public officials and their spouses should not issue memecoins.
Senate Vote Count Still Under Focus
According to Axios, both parties view the ethics language as the final major barrier to securing the 60 Senate votes required. Republicans, the White House, and the crypto industry continue treating passage of the CLARITY Act as a priority.
The report also noted that Fairshake currently holds about $125 million for political spending. Meanwhile, Republicans hope to deploy those resources before the upcoming midterm elections.
The CLARITY Act cleared the Senate Banking Committee in May with support from Democratic Senators Ruben Gallego and Angela Alsobrooks. Axios also noted that 18 Senate Democrats later supported the GENIUS Act after internal party debates over crypto regulation and President Trump’s financial ties to the industry.
