The White House is pushing hard to pass the “Clarity Act” on 7/4, refusing to add new conflict-of-interest provisions for Trump

The White House has recently been actively pushing the “Clarity Act” (《Digital Asset Market Clarity Act》), aiming to have Congress complete legislation by July 4 this year, ahead of U.S. Independence Day. The bill is seen as a key milestone in establishing a U.S. crypto regulatory framework, intended to clarify the division of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and to set clear legal rules for stablecoins and market structure.

White House targets getting the full “Clarity Act” passed by July 4 Independence Day

According to CoinDesk, White House crypto adviser Patrick Witt said at the Miami Consensus conference that the Senate Banking Committee is expected to complete its review of the bill this month, then hold a full Senate vote in June, and finally have it passed by the House before the July 4 deadline.

Although New York Senator Kirsten Gillibrand predicted the bill might not be submitted for the President’s signature until early August, Witt emphasized that even though time is tight and there isn’t much room to compromise, it is still a realizable goal.

Stablecoin yield proposal: banks and the crypto industry are both dissatisfied but can accept it

A major breakthrough in the bill’s progress is consensus on the stablecoin yield provisions. In early May, Senators Thom Tillis and Angela Alsobrooks reached a compromise agreement stating that stablecoins must not pay interest equivalent to bank deposits, but rewards tied to usage and consumption are allowed.

Witt noted that the White House previously convened discussions with players from the banking sector and the crypto industry to negotiate the language, and that the final version revised by the senators left both sides “not happy.” He said jokingly that when both banks and the crypto industry are equally unhappy, it means the compromise is correct and balanced—and that the stablecoin yield controversy can be considered effectively wrapped up for now.

(Banking backlash on CLARITY Act stablecoin incentives: “patching deficiencies,” fear of weakening protection for bank deposits)

The White House refuses to add conflict-of-interest provisions for President Trump

In addition to the technical provisions, the bill is currently still stuck on a dispute over conflict-of-interest language. Some Democratic lawmakers are calling for strict safeguards due to former President Donald Trump and his family’s crypto business. In response, Witt stated the White House will accept general rules that apply to everyone, but will not create provisions targeting any specific political figure or their family members.

Draft crypto rules in advance to prevent China from gaining control over rulemaking

Witt also specifically mentioned the importance of the regulatory bill for national security. He warned that if the United States does not proactively set rules, it will become a rule follower, and could even be forced to comply with standards set by other countries—“God forbid, we must never let China ultimately get the power to write these rules.”

He pointed out that America’s leadership position in global capital markets is one of the core elements supporting “American hegemony.” Besides the Clarity Act, the GENIUS Act—passed last year—has also been in full swing with secondary rulemaking being developed by the U.S. Department of the Treasury, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and other agencies, with an important milestone expected to be reached by July—marking a full year of progress.

Ripple CEO: Stablecoin scale to grow to $3 trillion

As U.S. regulatory trends shift toward clarity, the level of participation by financial institutions is increasing significantly. Strong demand for Morgan Stanley’s spot Bitcoin ETF recently indicates that retail investors and investors are independently adjusting their asset allocations. Ripple CEO Brad Garlinghouse is also optimistic, forecasting that the global stablecoin market size will grow from the current $320 billion to $3 trillion by 2031.

Garlinghouse emphasized that legislative safeguards can prevent crypto rules from shifting again due to changes at the SEC chair, and that implementing U.S. regulatory policy will also provide important reference examples for global financial markets.

This article White House pushes hard to pass the “Clarity Act” by 7/4, refuses to add conflict-of-interest provisions for Trump first appeared on Chain News ABMedia.