U.S. Senate Fails to Reach Agreement on CLARITY Act

A bipartisan group of U.S. senators attempted negotiations on the CLARITY Act last night, according to ChainCatcher. The discussions aimed to persuade Democrats to compromise on at least two unresolved issues, but no agreement was reached. Senator Cynthia Lummis stated that both parties have agreed on 99% of the bill's content and expressed hope that Democrats would address the remaining issues after the bill's committee review. She warned that if another incident like FTX occurs, the blame would fall on those who failed to act. Democratic Senators Adam Schiff and Ruben Gallego have been advocating for a compromise on ethical standards and conflict of interest clauses related to the President's family before the committee review, making it a condition for supporting the bill. Additionally, some Democratic senators have raised concerns about the Blockchain Regulatory Clarity Act (BRCA) provisions, which propose prohibiting lawsuits against non-custodial software developers under remittance business laws. Sources indicate that while significant progress was made on ethical and conflict of interest issues, disagreements over BRCA amendments led to the breakdown of negotiations. The upcoming committee review is expected to be highly partisan.