Trump's conflict of interest controversy escalates, America's digital asset market faces obstacles in promoting the "Clear Act."

The process of advancing the "Clarity Act" in the U.S. Senate's digital asset market encountered resistance this week. Democratic lawmakers involved in bipartisan negotiations said they have not yet accepted the latest framework proposed by the Republicans, and with only a few weeks left before Congress recesses in August, the time to push the bill forward as planned has become increasingly urgent. It is understood that Republican lawmakers were scheduled to report the progress of negotiations on the "Clarity Act" to President Trump on Thursday. This meeting may affect how Congress addresses the conflicts of interest and ethical standards involved in President Trump's extensive cryptocurrency business empire, which is currently one of the biggest points of contention between the Democratic and Republican parties. Democratic Senator Adam Schiff, who is participating in the negotiations, said that the current text of the bill needs "significant modifications" to gain Democratic support. He pointed out that while the two sides have narrowed their differences on many provisions, the White House has recently "backtracked" on ethical standards, overturning parts of the agreement that Democrats believed had already been reached. Another core Democratic negotiator, Senator Ruben Gallego of Arizona, also stated that the Democrats have not approved any revised versions of the bill led by the Republicans, even though the Republicans have indicated that a new draft will be released soon. Senator Cynthia Lummis of Wyoming, one of the chief Republican negotiators, said that both sides continue to negotiate on a bipartisan basis and have made substantive progress. In addition to ethical issues, the Democrats are also calling for stronger provisions on anti-money laundering and combating illegal financial activities to prevent the use of cryptocurrencies for illicit funds. Furthermore, different versions of the bill proposed by the Senate Banking Committee and the Agriculture Committee still need to be further coordinated. Chairman of the Senate Agriculture Committee, John Boozman, stated that the coordination between the two bills is now "99.9% complete." Republican Senator Bernie Moreno emphasized that the two parties have been negotiating around this bill for over a year, investing a lot of time and effort, and hopes to bridge the remaining differences soon. Democratic Senator Catherine Cortez Masto, responsible for negotiating anti-money laundering provisions, stated that both sides are currently engaging in negotiations with sincerity. However, several lawmakers are concerned that even if a new version of the bill is released soon, the Senate may struggle to complete the deliberation before the recess on August 7th. Senator John Kennedy of the Senate Banking Committee bluntly stated, "Without a bill, you can't pass a bill." He pointed out that even if a new draft is released, many senators who were not involved in the previous discussions may have a lot of questions and may ask for a postponement of the vote. The entire process often takes weeks, and there is currently not enough time in Congress. Analysts point out that the supporters of the "Clarity Act" also have limited voting advantages. The results of the vote on the previous "Genius Act" are widely regarded as an important reference for the "Clarity Act." The "Genius Act" mainly established a regulatory framework for stablecoins and was passed in the Senate last year with 68 votes in favor and 30 votes against, including 18 Democratic senators in favor and only two Republican senators against. In comparison, the "Clarity Act" has a broader scope of regulation, not only involving stablecoins but also trying to establish an overall regulatory framework for digital assets, hence receiving slightly less support than the "Genius Act." At the same time, some Democratic senators who previously supported the "Genius Act" are now expressing reservations about the "Clarity Act." Schiff, Gallego, and Democratic Senator Angela Alsobrooks of Maryland all stated that their concerns have not been fully addressed. In addition, Democratic Senator Raphael Warnock believes that President Trump and his family's recent commercial activities in the cryptocurrency field have made legislative discussions more complicated, making it difficult for the two parties to reach a consensus. With only about three legislative weeks left until the summer recess of Congress, supporters of the "Clarity Act" are intensifying negotiations in hopes of completing the legislative process before the recess. As of Friday's closing, Bitcoin was slightly up, hovering around $64,000. Most Bitcoin-related stocks fell, with Strategy (MSTR.US) bucking the trend to close up 0.87%, Coinbase (COIN.US) down 2%, Circle (CRCL.US) down 0.3%, and Robinhood (HOOD.US) down 5.72%.