TL;DR
- Negotiations: Gallego warns that rushing the CLARITY Act before ethics and stablecoin issues are resolved could delay the bill.
- White House Pressure: Trump and advisers push for movement, but Gallego says premature action risks setbacks.
- Industry Role: Gallego urges the crypto sector to support continued bipartisan talks instead of a fast vote.
Senator Ruben Gallego urged the cryptocurrency industry to slow down its push for a quick Senate vote on the CLARITY Act, warning that unresolved disputes over ethics rules and stablecoin yield could delay the broader digital asset package. Speaking at the SALT Wyoming Blockchain Symposium, he said that forcing the bill forward before lawmakers finish negotiating key sections would risk setting the entire effort back.
Gallego Says Rushing the Process Could Backfire
Gallego told attendees that the CLARITY Act still requires substantial work across committees, including finalizing the Agriculture Committee portion and assembling the full legislative package. He argued that the industry should encourage Democrats and Republicans to keep negotiating instead of pressing for an immediate vote. According to Gallego, any attempt to accelerate the process could produce a result that neither side wants, especially with several structural questions still unresolved.
He noted that he and Senator Thom Tillis submitted compromise ethics language to the White House before recess but had not received a detailed response. Gallego said strong ethics rules were essential to secure Democratic support and move the CLARITY Act forward. Instead, he described a pattern of incomplete or regressive replies from the administration, adding that the lack of clarity made it harder to finalize the bill.
White House Pressure Adds Complexity
The CLARITY Act has been positioned as a central piece of federal digital asset legislation, dividing oversight between the SEC and CFTC. Earlier this month, Senate Majority Leader John Thune said the chamber was “punting” the vote and would queue the bill up after lawmakers return in September. Gallego warned that pushing for a fast vote before negotiations conclude could undermine that timeline.
His remarks came as the White House increased pressure on Congress. Trump urged lawmakers to pass a “fair version” of the CLARITY Act during a meeting with crypto executives, while adviser Patrick Witt said the administration would keep negotiating with Democrats until the September vote but “can’t afford to wait forever.” Gallego countered that premature movement could set the CLARITY Act back, stressing that the remaining steps must be completed carefully.
Industry Urged to Support Continued Negotiations
Gallego emphasized that the crypto industry should back continued bipartisan talks rather than chase a quick procedural win. He said that rushing the CLARITY Act could create more problems than it solves, especially with ethics language still unsettled. For now, he believes the best path forward is steady negotiation, not speed, if lawmakers want the CLARITY Act to advance without setbacks.
