🚨NEW: Negotiations between a small group of bipartisan senators aimed at getting Democrats to a better place on at least two outstanding Clarity Act issues wrapped for the night without a deal, I’m told. In a statement, one of the lead GOP negotiators, @SenLummis, said: “Ultimately, we have agreement on 99% of the bill. I hope my colleagues across the aisle will work with me to get the remaining 1% resolved after we pass this bill out of committee. Otherwise, when or if another FTX happens, we will have no one to blame but ourselves.” Democrats like @SenAdamSchiff and @SenRubenGallego had been pushing to reach a compromise on ethics/conflicts of interest involving the First Family ahead of tomorrow’s markup as a condition of their support for the bill, while other Democrats voiced eleventh-hour concerns about provisions tied to the Blockchain Regulatory Certainty Act (BRCA), which would prevent non-custodial software developers from being prosecuted under money transmitter laws. It’s my understanding that meaningful progress was made on ethics, but last minute disagreements over BRCA changes ultimately prevented a deal from coming together. Of course, it’s still unclear how the five pro-crypto Democrats on the Banking Committee will ultimately vote tomorrow, but as of now, the expectation is that the markup will be partisan.
