Lawmakers Clash Over Clarity Act Guardrails Before Senate Vote on FTX-Style Conflicts 4 Years Later
Updated
Updated · POLITICO · Sep 10
Lawmakers Clash Over Clarity Act Guardrails Before Senate Vote on FTX-Style Conflicts 4 Years Later
3 articles · Updated · POLITICO · Sep 10
Summary
Senate negotiators are now fighting over whether the Clarity Act should force stricter firewalls inside vertically integrated crypto firms before the bill reaches the floor next week.
Democrats want regulators to set minimum standards separating businesses such as exchanges and brokerages, arguing FTX’s 2022 collapse showed how shared ownership can fuel conflicts of interest.
Republicans say they support conflict-of-interest rules but oppose language they fear could let a future administration break up crypto companies, a stance backed by industry voices including Coinbase.
Sen. Cory Booker has emerged as a key Democratic holdout in talks with Sen. Cynthia Lummis and Chair John Boozman, saying he will not support a bill that fails to protect consumers.
The dispute adds another obstacle to a measure already at risk over ethics provisions tied to President Donald Trump’s family crypto interests, complicating hopes for a bipartisan Senate deal.