Richard Carback

The Clarity Act is stuck, and the reason tells you everything about how Washington works. According to Eleanor Terrett, "an ethics agreement is the key to unlocking the rest of the negotiations." Industry participants say the same thing. "If we can get ethics, the rest of the bill will come together." The bill needs 60 votes to clear the Senate filibuster. That means at least 7 Democrats have to cross. The ones willing to vote yes have all drawn the same line. They want enforceable language preventing senior government officials from profiting off crypto while in office. This became harder to dismiss after Trump's 2025 financial disclosure showed over $1 billion in income from crypto. $635 million from $TRUMP memecoin royalties. $550 million from World Liberty Financial. More than half his total income came from the industry this bill regulates. Before recess, negotiators had a tentative deal. State AGs could sue the DOJ for failing to enforce ethics provisions. Then Republicans and the White House walked it back. Lummis floated an alternative. Democrats haven't signaled whether it's enough. Meanwhile, the provision actually worth fighting for hangs in the balance. Section 604 would codify that non-custodial software developers should not be treated as money transmitters for publishing open-source code. Senator Wyden sent a letter urging its preservation. The ethics fight is consuming all the oxygen. Section 604 protects developers. It's the part that matters most for freedom tech. But it's being held hostage by a negotiation over whether the President should be allowed to make a billion dollars from memecoins while signing crypto legislation. The Senate returns next week. No revised text has been released. August recess is approaching.