What's behind the Clarity Act hold up
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The landmark Clarity Act is stuck in the Senate over a provision seeking to address Trump's business ties to the the industry.
Why it matters: It's straining the generally friendly relationship between the president and the crypto industry.
Context: Democrats are seeking to add the provision to a merged draft after the president's financial disclosures earlier this year revealed that he secured $1.4 billion in earnings from his crypto ventures since returning to the White House.
Zoom in: Investors and founders agree the current administration has been a positive for the industry, but many have privately expressed frustrations with the president's ties.
- The concerns have ranged from worries that his crypto moves could politicize the industry to outright ethical concerns.
- The Clarity Act would be the first wide-ranging piece of legislation to determine which agency has jurisdiction over certain kinds of tokens.
What they're saying: "The minute that Trump coin got launched, it went from 'crypto is bipartisan' to 'crypto equals Trump equals bad, equals corruption,'" Cardano founder Charles Hoskinson told Decrypt earlier this year. "It became a campaign line for the midterm election."
Reality check: The industry saw the Biden administration, and then SEC chair Gary Gensler, as overly heavy-handed, and enforcement-focused. Making Trump still the preferred alternative.
The bottom line: The Clarity Act passing would be insurance against a new administration or head of SEC suddenly change course on crypto.
