- US President Donald Trump keeps the pressure on the Senate to fast-track the CLARITY Act before the August recess.
- On the other hand, he cancelled the signing of the ROAD to Housing Act, using it as a bargaining chip for the SAVE America Act.
There’s continuous pressure from the White House for lawmakers to pass the Digital Asset Market CLARITY Act as early as July. It follows President Donald Trump’s controversial hold on the 21st Century ROAD to Housing Act.
White House Targets CLARITY Act’s Signing Before August Recess
According to Crypto in America’s Eleanor Terrett, Trump wants the legislation ready on his desk for signing between the resumption of Senate sessions on July 13 and the August recess. The window leaves them with only 20 days to iron out the bill’s provisions.
Trump is reportedly pressing his allies in the Republican Party to make it happen. However, several key issues remain unresolved in the pending CLARITY Act.
Key Issues in the CLARITY Act
The Democratic Party maintains its proposal to ban high-ranking government officials from participating in crypto-related activities to prevent potential conflicts of interest. The ethics concerns cite as an example how the Trump family’s crypto-linked businesses have particularly benefited from several policies favoring digital assets.
Senators Elizabeth Warren and Kirsten Gillibrand are among the loudest critics of such practice. Nonetheless, Gillibrand remains one of the staunchest advocates of the CLARITY Act.
Another key point of contention focuses on the legislation’s safe harbor provision for software developers. Several industry leaders, including the Catholic church, criticized the exemption, claiming that it would allow actors in illicit finance to operate with impunity. The religious group’s worry specifically centers on the growing role of decentralized finance (DeFi) in facilitating illegal activities like human trafficking.
Additionally, it’s worth noting that there are questions on crypto oversight along the way. Meanwhile, banks and allied trade groups are still lobbying for a sweeping prohibition on stablecoin and crypto yields.
Despite the fierce debate around it, crypto-related institutions and their supporters are optimistic that the bill will reach the president’s desk before the August break. Bipartisan support is also strong, with Senators Cynthia Lummis, Bernie Moreno, Ruben Gallego, and Angela Alsobrooks joining Gillibrand in pushing for its approval.
Why Trump Stalled the ROAD to Housing Act
The housing bill hit a brick wall at the White House as Trump canceled its signing. In a controversial move, he used it as leverage to pressure Congress to prioritize the SAVE America Act.
Trump declared the SAVE America Act a “National Emergency” amid the approaching US midterm elections. The bill notably requires voters to provide a valid ID and proof of citizenship at polling stations. Moreover, it imposes strict limitations on mail-in ballots.
The ROAD to Housing Act aims to provide Americans with access to affordable housing. Furthermore, lawmakers managed to insert an anti-Central Bank Digital Currency (CBDC) provision in the bill, preventing the US Federal Reserve from creating or issuing one until 2030. It would have reinforced Trump’s earlier Executive Order (EO) against it.
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