BTC TOP founder Jiang Zhuoer evaluates the probability of adoption of the Clarity Act, which aims to determine the legal framework of the crypto asset market in the USA, between 10 percent and 20 percent. Zhuoer says disagreements in Congress focused particularly on ethics provisions.
The regulation, supported by US President Donald Trump, limits the president and his wife from issuing crypto assets. Democrats, on the other hand, are demanding that the scope be expanded to include other family members and family-related organizations.
The parties could not agree on which authorities could file a lawsuit in case of possible violations. While Trump supports giving authority to the US Department of Justice, Democrats want state attorneys general to be able to take legal action, citing the fact that the Secretary of Justice is appointed by the president.
According to Zhuoer, accepting all of the restrictions proposed by Democrats could significantly reduce Trump’s willingness to sign the bill. Although ethical provisions are the most obvious area of disagreement, there are differences in other parts of the legislation that have not yet been resolved.
While the US Congress is expected to go on recess on August 7, there are approximately 10 working days left to advance the bill. Zhuoer assesses that the tight legislative calendar makes it difficult to close major disagreements in this time period.
The working period of the Congress between September 14 and October 5 coincides with the midterm elections. While lawmakers are expected to deal with budget and appropriations agendas in this process, the possibility of a federal government shutdown may also put pressure on the calendar. Zhuoer argues that Democrats do not have a strong political incentive to fast-track the bill before the election.
