Clarity Act faces narrowing path as ethics row and stablecoin risks mount

[kevin1]

The Clarity Act, once billed as a landmark effort to bring certainty to US crypto markets, now faces mounting obstacles. While the bill has cleared the House and Senate Agriculture Committee, it must still pass the powerful Senate Banking Committee, where Democrats hold leverage.

Lawmakers are demanding tougher anti-money-laundering rules, full staffing of the CFTC, and anti-corruption safeguards—calls that intensified after reports of a UAE investment in a Trump-linked crypto firm. New York prosecutors have also warned the bill could allow stablecoin issuers to retain stolen funds rather than return them to victims.

President Trump has promised swift action on crypto legislation, but with negotiations stalled and controversies growing, that timeline appears increasingly unlikely.

[mendez]

the uae investment story completely poisoned the well. even lawmakers who were on the fence now have cover to slow this down.