Democratic Senator Ruben Gallego pushed back against the CLARITY Act, a crypto regulation bill supported by former President Trump, calling it "not a serious effort." Once a supporter during committee review, Gallego now plans to craft a competing proposal alongside Republicans.
The CLARITY Act, which seeks to create a regulatory framework for digital assets, has passed the House and Senate Banking Committee but still faces hurdles before becoming law. A new ethics clause added by Republicans has sparked strong opposition among Democrats, threatening bipartisan support key for the bill’s advancement.
This growing division puts the bill’s future in question. Market indicators show a declining chance that the CLARITY Act will be signed into law by the end of 2026. Senate rules require 60 votes, making collaboration across party lines essential but increasingly difficult.
Developments from Gallego and other Democrats are now closely watched, as their stance could reshape the bill’s path. Any fresh proposals or amendments might influence market expectations and the legislative timeline. Meanwhile, statements from leading Republicans and the White House could also steer the process in the coming weeks.
