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Ahmed Barakat
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Three progressive organizations, Indivisible, Demand and the Revolving Door Project, sent a letter Tuesday evening to every Democratic Senate office criticizing Sen. Kirsten Gillibrand for her son’s ties to the Democratic Party. encryption industry. The move complicates its efforts to broker a compromise on the unresolved ethics provisions of the CLARITY Act. It also indicates that Senate Democrats who support the bill are facing an organized political campaign, not just political disagreement.
The letter portrays Gillibrand, chairman of the Democratic Senate Campaign Committee, as vulnerable to the same criticisms that Democrats have leveled at President Donald Trump’s cryptocurrency projects. The groups argued that attacks on Trump’s cryptocurrency profits lose steam if the leading Democratic negotiator has close family ties to the industry.
Meanwhile, Gillibrand has repeatedly called on elected officials and their spouses to avoid issuing or sponsoring digital assets.
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60 votes and a tight schedule
The CLARITY Act is the most comprehensive cryptocurrency market structure bill proposed in the United States. Its passage requires 60 votes in the Senate, which means Republicans still need many Democratic supporters beyond those who supported it in committee.
Senators Ruben Gallego and Angela Alsobrooks voted in favor of the resolution during the Senate Banking Committee’s review, leaving leadership searching for additional votes.
Meanwhile, bipartisan ethics conversations continue on multiple fronts. Senators Bernie Moreno and Cynthia Lummis are working with the White House to draft compromise language, while Senator Thom Tillis is leading separate negotiations between the two parties. Although no draft has been released, reports indicate that discussions are progressing. There is still debate about how to apply ethical rules to public employees and their families.
Fairshake, the cryptocurrency industry’s leading super PAC, is also commenting on the negotiations. The group has nearly $125 million in available funds, raising the political risks ahead of the 2026 midterm elections. As a result, both parties have incentives to reach an agreement, while progressive groups continue to warn about weak ethics provisions.
Echoes of the Law of Clarity and the Law of Genius return
The current showdown is very similar to the GENIUS game that took place last year represents debate, when Senate Democrats clashed over cryptocurrency regulation and Trump’s financial ties to the industry. This legislation eventually gained the support of 18 Democratic senators after lengthy negotiations. Now the Clarity Act faces similar internal pressures, familiar lobbying efforts, and another race against the legislative calendar.
Gillibrand once again sits at the center of negotiations, and her ability to unite Democrats around an acceptable moral compromise may determine whether the bill advances. The Senate is expected to consider the legislation before its August recess. Until negotiators issue the final moral language, the battle remains focused on political positioning rather than legislative text.
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