The CLARITY Act fails to reach a bipartisan agreement as Democrats remain divided over BRCA provisions

Odaily reported, according to crypto journalist Eleanor Terrett, sources say a small bipartisan group of U.S. Senate lawmakers held negotiations last night over the CLARITY Act, attempting to secure concessions from Democrats on at least two outstanding issues, but ultimately failed to reach an agreement.

Senator Cynthia Lummis stated that the two sides have reached consensus on "99% of the content" of the bill and expressed hope that Democrats would continue to resolve the remaining issues after the bill clears the committee. Otherwise, if another incident similar to FTX occurs in the future, "they have only themselves to blame."

According to reports, Democratic Senators Adam Schiff and Ruben Gallego have been pushing for a compromise on ethics and conflict-of-interest provisions related to the president's family before the committee review, making it a condition for their support of the bill.

Additionally, some Democratic lawmakers have raised concerns about provisions in the Blockchain Regulatory Certainty Act (BRCA), which aims to prohibit non-custodial software developers from being prosecuted under money transmission laws.

Sources say that while both sides had made substantial progress on ethics and conflict-of-interest issues, disagreement over amendments to the BRCA ultimately led to the collapse of negotiations. The market now widely expects the upcoming committee markup to be distinctly partisan.