CLARITY Act bipartisan talks collapse! Blockchain regulatory provisions become the only point of dispute

Bipartisan talks over the cryptocurrency regulation bill 《CLARITY Act》 in the U.S. Senate fell apart on May 14. Although both sides had reached 99% agreement on the bill’s content, Democrats also tried to use negotiation leverage such as ethics provisions—like conflicts of interest—as support for the bill. In the end, however, they still couldn’t agree due to disputes over the content of the 《Blockchain Regulatory Certainty Act》 (BRCA), leading to an expected political standoff in the subsequent committee review.

（Clarity Act 5/14 committee vote: Warren 40+ amendments, including Trump provisions）

Republican Sen.: The CLARITY Act has reached 99% agreement—must prevent the next FTX

According to Eleanor Terrett, Cynthia Lummis, the Republican senator leading the negotiations, said that both parties have already reached 99% consensus on the bill’s overall content. She urged her Democratic colleagues to continue working together to resolve the remaining 1% of differences after the committee passes the bill, and warned that if related legislation is not pushed forward promptly, lawmakers will find it hard to defend themselves if another similar incident occurs in the future—such as a crypto exchange collapsing like FTX.

Democrats use ethics provisions as bargaining chips to support the crypto bill

Democratic senators Adam Schiff and Ruben Gallego will use “First Family” conflict-of-interest provisions as leverage, as a prerequisite for Democrats’ agreement to support the 《CLARITY Act》. As understood, the two sides have reached consensus in discussions on this issue, but Democrats still raised objections at the last moment before the bill’s vote.

U.S. Senate Banking Committee releases the latest version of 《Clarity Act》, with 24 hours left before the amendment submission deadline

Talks collapse: Disputes over the details of the 《Blockchain Regulatory Certainty Act》 (BRCA)

The reason this bipartisan negotiation broke down at the last minute was disputes over the details of the 《Blockchain Regulatory Certainty Act》 (BRCA). The main purpose of the additional provision is to protect DeFi developers from strict financial-law regulatory oversight. Some Democratic senators raised concerns about this modification at a critical moment, and the two sides therefore couldn’t reach consensus. The bill is expected to head toward a partisan confrontation in tomorrow’s deliberations.

Pro-crypto Democratic lawmakers’ moves draw attention

At present, the market and industry are watching the moves of five Democratic lawmakers who lean toward supporting crypto. However, with the negotiations breaking down, the upcoming Senate Banking Committee review of the bill is expected to evolve into a confrontation with votes split along party lines.

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