Bloomberg: Trump the Biggest Obstacle to Passage of “CLARITY Act,” Ethics Provision Opposed by Democrats

BlockBeats News, July 26th – According to Bloomberg, the approximately $1.4 billion in profits earned by Trump and his associates through meme coins and token businesses has become the biggest obstacle to the passage of the "CLARITY Act." The Democratic Party is requesting stricter provisions to prevent the President from continuing to profit from the cryptocurrency industry regulated by his government. Trump needs support from at least 7 Senate Democrats to advance the bill.

The Democrats oppose the Department of Justice, led by a Trump-appointed Attorney General, serving as the primary enforcement agency under ethical considerations and are requesting independent enforcement powers for state attorneys general. Bipartisan Senators Ruben Gallego and Thom Tillis are discussing a compromise, but Senate Majority Leader John Thune has stated that the bill may not pass before the August recess.

Critics argue that the existing draft allows Trump to sell off his significant stake in the cryptocurrency business or place it in a blind trust but does not mandate a sale. The provisions only apply in cases where officials have a "direct interest" in cryptocurrency assets, and it remains unclear whether Trump's indirect 38% ownership of World Liberty Financial through DT Marks DEFI LLC is covered. The bill also does not restrict government officials' children, and ethical requirements are set to expire on January 20, 2029.

In addition to ethical concerns, the Democrats are also calling for stronger consumer protection and anti-money laundering measures, while the banking sector is pushing for tighter stablecoin reward restrictions. The probability of the "CLARITY Act" passing this year has decreased to around 33%, about half of the probability of passage after the Senate Banking Committee supported an early version in May.