Bloomberg: Trump is the biggest obstacle to passing the CLARITY Act, and the ethics provisions are opposed by the Democratic Party

Comparatively, according to Bloomberg, the approximately $1.4 billion in revenue received by Trump and his affiliates through the meme coin and token business has become the biggest obstacle to passing the CLARITY Act. Democrats are calling for stricter provisions to prevent the president from continuing to profit from the crypto industry regulated by his government, while Trump needs the support of at least 7 Senate Democrats to push the bill through.

The Democratic Party opposes the Attorney General appointed by Trump to lead the Department of Justice as the main enforcement agency for ethical regulations, and demands that the state attorney general obtain independent enforcement powers. Bipartisan Senators Ruben Gallego and Thom Tillis are discussing a compromise, but Senate Majority Leader John Thune said the bill might not pass before the August recess.

Critics argue that the current draft allows Trump to sell large interests in his crypto business, or place them in blind trusts, but does not require the sale; the provisions only apply to cases where officials have a direct interest in crypto assets, and it is still unclear whether Trump's indirect holding of approximately 38% of World Liberty Financial's shares in DT Marks LLC is applicable. The bill also does not restrict children of government officials, and the ethical requirements expire on January 20, 2029.

In addition to ethical issues, the Democratic Party is also calling for stronger consumer protection and illegal financial measures, while the banking sector is pushing for tighter restrictions on stablecoin rewards. The probability of passing the CLARITY Act during the year has dropped to about 33%, which is about half of the probability of passing after the Senate Banking Committee endorsed the earlier version in May.