Federal prosecutors have reportedly submitted proposed revisions to the CLARITY Act, sparking pushback from the White House as lawmakers face a tightening timeline to advance the closely watched crypto market structure bill.
Prosecutors Seek Changes
According to a report, US prosecutors have put forward a series of amendments to the CLARITY Act, the legislation intended to establish a comprehensive regulatory framework for digital assets in the United States. The proposals reflect law enforcement concerns and arrive as the window for a vote on the bill continues to narrow.
The involvement of prosecutors underscores the ongoing tension between industry advocates pushing for regulatory certainty and enforcement officials seeking to preserve tools to combat illicit activity in crypto markets.
"Not even close" to the administration's position, a White House crypto adviser said of the proposed changes.
White House Pushback
A White House crypto adviser dismissed the proposed revisions, saying they were "not even close" to the administration's position. The comment signals that another round of negotiations, and potential conflict, lies ahead before the bill can move forward.
The disagreement highlights the competing priorities at play as different arms of the government stake out positions on how digital assets should be regulated. While the administration has generally signaled support for clearer crypto rules, the specifics remain contested.
Key sticking points in the debate include:
- The scope of enforcement authority granted to prosecutors and regulators
- How to balance industry demands for clarity against anti-fraud safeguards
- The narrowing legislative calendar available to reach a compromise
What Comes Next
With the voting window shrinking, lawmakers and stakeholders face pressure to reconcile their differences quickly. The friction between prosecutors' proposals and the White House position suggests that reaching consensus on the CLARITY Act's final form could prove difficult in the time remaining.
The outcome will be closely watched by an industry that has long sought a defined regulatory structure in the United States, and any further delays could postpone the clarity that market participants have been seeking.