Senator Thom Tillis has set a second strict condition, stating he will vote against the CLARITY Act if the bill does not include ethics provisions targeting the Trump family’s crypto businesses.
The Republican broke with party lines just days after lifting his hold on the confirmation of Kevin Warsh as head of the Federal Reserve. This happened Sunday after the Justice Department ended its criminal investigation into current Fed Chair Jerome Powell.
Negotiations Are Gradually Moving Toward Compromise
Tillis became the first Republican on the Senate Banking Committee to openly demand the bill include a section with ethical restrictions. He joined Democrats who insist on rules affecting the Trump family’s crypto assets.
The proposed amendment would prohibit federal officials, including the president, from participating in the issuance or promotion of digital assets. This is exactly what the North Carolina senator is seeking.
On the Democratic side, negotiations are being led by Adam Schiff and Ruben Gallego. On the Republican side, Cynthia Lummis and Bernie Moreno are participating, along with White House crypto policy advisor Patrick Witt.
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According to Schiff, the sides are gradually coming closer as other parts of the bill are agreed upon. Republicans on the Banking Committee hope to advance the bill in the coming weeks.
As Tillis told Politico:
«If the bill does not include ethics provisions before it leaves the Senate, I will withdraw from negotiations and vote against it.»
Trump’s Crypto Empire Surpasses $1 Billion
Crypto projects linked to the Trump family are already valued at more than $1 billion, according to Politico. Key assets include World Liberty Financial, a project created with the participation of Trump and his sons. WLFI has already launched the stablecoin USD1 and applied for a U.S. banking license.
Another area of interest is the meme coin Official Trump (TRUMP). The related entity recently gathered nearly 300 top holders at an event in Mar-a-Lago.
Against this backdrop, Republicans have less and less time to pass the law before the midterm elections. Tillis’ stance and his voting conditions show that without a compromise with Democrats, especially on ethics, passing the CLARITY Act will be extremely difficult.
