The crypto market structure law, the CLARITY Act, has seen improved support for Section 604 (developer protections). But the ethics issue may become complicated following reports of US President Donald Trump’s latest $1.4 billion cryptocurrency earnings.
The County Sheriffs of America (MCSA) said in a letter to the Senate that it had changed its position on the bill to “neutral,” noting ongoing discussions on Section 604.
We believe there is an opportunity to further strengthen legislation to support responsible innovation and the practical needs of state and local law enforcement.
The law enforcement group also called for the framework to provide the necessary resources to help federal and state officials effectively implement digital assets policy.
In June, four different law enforcement agencies, Catholic groups and the banking lobby opposed Section 604 of the bill suggests it will facilitate illicit financial flows.
Therefore, MCSA’s neutral stance showed increased support from some of those who had previously opposed the bill.
According to Coinbase CEO Brian Armstrong, the update was “huge” and meant a clearer path for the CLARITY Act to take effect now that law enforcement concerns have been addressed.
Will Trump’s $1.4 billion crypto profits derail the CLARITY Act?
However, ethical concerns have arisen again. Latest reports showed The Trump family’s crypto empire generated over $1.4 billion in revenue by 2025. More than $630 million of the profits were made from the Official Trump memecoin.
Based on the above, Senator Kirsten Gillibrand renewed her ethical concerns and called for elected officials to be banned from creating their own crypto tokens.
This is a common-sense requirement that should have broad bipartisan support; Public officials and their spouses should not issue memecoins.
HE added,
We cannot allow our own interests to destroy the opportunity to strengthen consumer protections, curb illicit financing, and expand economic opportunity for the millions of Americans our financial system leaves behind.
It’s worth noting that the ethics provisions in the CLARITY Act got off to a rocky start last month. But Democrats insisted that concerns must be addressed before supporting the bill.
Reacting to Trump’s unexpected cryptocurrency drop, Hasu, Lido’s strategic advisor, expressed similar concerns and noted:
This is a shame. And I don’t understand how that hasn’t backfired on this industry in a big way.
The final updated CLARITY Act text was expected to be released over the July 4th weekend, with a possible vote in the Senate later in the month.
While Bloomberg estimates that the bill has a 60% chance of becoming law this year, Galaxy Research 50-50. It remains to be seen whether the ethics provisions will derail the bill’s progress.
Final Summary
- A sheriff’s group changes its stance on the CLARITY Act from ‘opposition’ to ‘neutral’
- But Sen. Gillibrand renews calls for ethics provisions after Trump’s $1.4 billion crypto profit
