"Clarity Act" Legislation Hits Stalemate, Bipartisan Senators Submit New Ethics Compromise Proposal to the White House

TechFlow News, July 31: According to The Block, bipartisan Senators Thom Tillis (Republican) and Ruben Gallego (Democrat) submitted a new ethical compromise proposal to the White House on Thursday morning local time, attempting to break the deadlock in advancing the "Clarity Act" cryptocurrency legislation.

Currently, there is less than a week left before the Senate recesses on August 7, but the bill still has not obtained the 60 votes required for passage. Democrats insist on adding stricter ethical clauses to constrain the Trump family's crypto interests, including meme coins issued by them and the World Liberty Financial project participated in by the family; while some Republican senators have objections to the stablecoin interest clauses, worrying that it will divert deposits from traditional banks to the crypto sector.

Although the draft leaked last week prohibits public officials and their spouses from issuing digital assets, it does not cover other family members, and includes a "sunset clause" expiring in January 2029, which critics believe effectively nullifies the entire ethical clause. Treasury Secretary Scott Bessent subsequently blamed the Democrats on X, stating that they "chose political gaming on the verge of a major victory". The Crypto Innovation Committee (CCI) warned that if the bill fails to pass, the US will hand over its global leadership position in the field of crypto regulation.