Conflict of interest and ethical norms are hindering the adoption of the CLARITY Act, a key cryptocurrency regulation law in the United States.
In Washington, cautious optimism remains regarding the fate of the CLARITY Act — a bill that is intended to become the first comprehensive federal regulation of the crypto industry in the United States. However, the main stumbling block remains provisions concerning ethics and potential crypto conflicts of interest related to Donald Trump's activities.
Ethical Impasse
The key unresolved issue is exactly how the bill will address potential conflicts of interest arising from the active involvement of the former president and his family in crypto projects. This concerns controversial initiatives such as World Liberty Financial, which raise questions about transparency and the potential use of political influence. Without clear ethical frameworks, the adoption of the CLARITY Act risks being delayed indefinitely.
Political Divide
The current version of the bill has not received support from Democrats. This creates a serious obstacle to its advancement, given the need for bipartisan consensus. At the same time, according to my information from insider circles in Congress and the industry itself, work on the final text could be completed within the next few months. However, without resolving the ethical issue, any adoption date remains uncertain.
My expert assessment: As long as politicians remain mired in ethical disputes surrounding specific figures, the industry loses time and money amid legal uncertainty. The CLARITY Act could provide the market with long-awaited clarity, but without overcoming this impasse, the U.S. risks ceding leadership in crypto regulation to more flexible jurisdictions such as the European Union or the United Arab Emirates.