US Crypto Legislation Reaches Critical Juncture, Trump Conflict of Interest Ethics Clauses Become Biggest Obstacle

According to The Block, U.S. "Clarity Act" crypto legislation has entered a critical phase, with Representative William Timmons stating, "Legislation will definitely be completed; this is one of the president's priorities and also a bipartisan consensus." Senate Majority Leader John Thune hopes to complete the Senate vote before the recess on August 7, but even if passed by the Senate, the bill still needs to return to the House of Representatives for deliberation, and the overall timeline may extend into the coming months. The current main point of contention lies in the ethics clauses regarding how to restrict federal officials, such as the President, Vice President, and members of Congress, from benefiting from digital assets during their term. Trump, Republican Senators Bernie Moreno and Cynthia Lummis, along with White House Chief of Staff Susie Wiles, held a meeting on Thursday afternoon regarding the ethics clauses, seeking Trump's endorsement. Democratic Senator Ruben Gallego stated that if the ethics clauses do not meet standards, Democrats will not vote in support. Blockchain Association CEO Summer Mersinger is cautiously optimistic about the bill's prospects but warned that if prediction market-related amendments are included, they will become a "poison pill" and should be addressed through separate legislation.