Ethical Deadlock: Why the CLARITY Act is Stalling in the U.S. Congress
Washington continues to show cautious optimism regarding the fate of the CLARITY Act — the first comprehensive federal bill aimed at introducing clear rules for the U.S. crypto industry. However, as my analysis of the current political dynamics shows, the main stumbling block has been not so much the technical aspects of regulation, but rather ethical norms related to potential conflicts of interest involving Donald Trump.
The problem lies in the provisions concerning the cryptocurrency assets and business ties of the former president. Democrats refuse to support the current version of the document, seeing in it loopholes that could allow Trump and his circle to use the new legislation for personal gain. This ethical dispute has effectively paralyzed the negotiation process, although technical work on the text, according to my information, is nearing completion.
Political compromise or deadlock?
Sources in Congress and industry representatives I have spoken with express confidence that the final text could be ready within the next few months. However, the key question remains open: can Republicans and Democrats find a compromise on ethical norms without sacrificing the effectiveness of regulation? Without bipartisan support, the CLARITY Act risks becoming yet another unfulfilled promise.
My expert assessment: Until the parties resolve the issue of crypto conflicts of interest, the bill is doomed to prolonged negotiations. The market should prepare for the possibility that regulatory clarity may come not from this act, but from separate initiatives at the state level — faster, but fragmented.