- White House meets law enforcement groups as illicit finance and ethics concerns stall crypto legislation.
- More than 200 crypto firms urge Senate leaders to advance the CLARITY Act.
- Galaxy Digital cuts CLARITY Act passage odds to 60% amid Senate hurdles and unresolved concerns.
The White House is set to host meetings with law enforcement groups on Wednesday as administration officials work to address concerns surrounding provisions in the Digital Asset Market Clarity Act.
The talks come at a key stage for the legislation, which continues to face resistance over issues related to illicit finance and ethics requirements. Several Democrats have stated that they will not support the bill unless law enforcement officials are satisfied that their concerns have been addressed, making the upcoming meetings a major step in ongoing negotiations.
According to Eleanor Terret, the discussions will focus in part on developer protections in the CLARITY Act, derived from the Blockchain Regulatory Certainty Act. Law enforcement groups have raised concerns that the provisions could make it more difficult to investigate and prosecute certain crypto-related financial crimes by creating legal protections that limit enforcement.
Industry Push Intensifies Ahead of Senate Action
The White House meetings follow a broader effort by the digital asset industry to build support for the legislation among lawmakers and law enforcement officials. Recent outreach included a town hall event and a fly-in involving former law enforcement officials now working in the crypto sector.
At the same time, more than 200 crypto companies and industry organizations have called on Senate leadership to schedule a vote on the bill. Signatories including Coinbase, Ripple Labs, Andreessen Horowitz, Stand With Crypto, the Blockchain Association, and the Crypto Council for Innovation urged lawmakers to move the legislation forward.
Senate Calendar Adds Pressure
Supporters of the bill continue to express confidence despite unresolved issues. Senator Cynthia Lummis recently reiterated her backing for the legislation, while Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets said negotiations have continued since the Senate Banking Committee approved the measure in May.
However, questions remain about the bill’s path through the Senate. Galaxy Digital Head of Research Alex Thorn recently reduced his estimated probability of CLARITY Act passage in 2026 from 75% to 60%, citing limited Senate floor time and the lack of visible progress on ethics and illicit finance provisions.
The legislation would require 60 votes to pass the Senate. With Republicans Josh Hawley and Rand Paul expected to oppose the measure, supporters will likely need backing from at least nine Democrats.
Related: Sen. Cynthia Lummis Slams Jamie Dimon for Misleading the Public Over the ClARITY Act
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