The Senate Democrats have already drafted a response proposal in light of the new version of the CLARITY Act. The negotiation process seems incomplete prior to a critical vote in the Senate. The Republican crypto bill has been finalized by the Republicans on Sunday. It was announced to be their last offer after months of negotiations. As per Politico, Democrats had drafted the counter proposal following an informal meeting at the office of Senate Minority Leader Chuck Schumer.
Current Ethics Language Stalls Democrats
The worries of Democrats revolve around whether the current ethics language is enough to enforce any possible conflict that may arise between government officials and digital currencies. Senator Mark Warner and Gallego believe that state attorney general can have the enforcement power over this language, it is still not enough. The President Donald Trump accepted the language of ethics from the Republican draft. However, Democrats want more. New York’s Attorney General, Letitia James, also opposes the new draft. They believe that the law will undermine states’ efforts to tackle cryptocurrency fraud.
Stablecoin Worries Create Hurdles for Republican Backing
The most recent CLARITY Act draft has a “circuit breaker” in it meant to deal with deposit outflows related to stablecoin interest rates. The banking industry remains opposed to the proposal, saying the protection it offers does not do enough to ensure the safety of deposits at regular banks. Republican senators Susan Collins and John Cornyn also share the same worries, making their backing of the bill uncertain as the vote approaches. On the other hand, Senator Kirsten Gillibrand is urging her peers to support the bill despite disagreements on certain issues.
Possible Outcomes of the Cloture Vote
The Senate will need at least 60 votes and move forward with voting on the CLARITY Act. The Democrats succeed in getting their number of votes, it won’t mean that the bill will become law. It will just be moved to the next step. This time, a simple majority will suffice for the bill to pass. Provided that the Republicans manage to win over the procedural obstacle. The return of Mitch McConnell from a three-month break may help the Republicans with this task.
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CLARITY Act Adds CFTC Rules for Non-DeFi Crypto Protocols
