Consensus Conference 2026》U.S. lawmakers warn: CLARITY crypto bill may face delays due to corruption risks

Senator Kirsten Gillibrand requests the inclusion of moral clauses in the crypto legislation, prohibiting officials from seeking personal gain. This move targets conflicts of assets within the Trump family; without consensus, the Democratic Party will refuse to vote.

Moral clauses have become the last line of defense. Gillibrand issues an ultimatum in Miami

At the second day of the Consensus conference held in Miami in 2026, U.S. Democratic Senator Kirsten Gillibrand, renowned investor Kevin O’Leary, and Coinbase Chief Compliance Officer Paul Grewal took the main stage together to provide a critical update on the progress of the highly关注的 cryptocurrency market structure bill, the “CLARITY Act.”

Gillibrand explicitly stated that for the bill to gain bipartisan support and pass smoothly in the Senate, it must include a strict “Ethics Provision,” prohibiting senior government officials from profiting from digital asset industries through their internal positions. She emphasized that without this clause, Democrats will refuse to support the bill.

This moral clause has become the most intense point of contention in the current legislative process. Gillibrand pointed out that using policy-making power or insider information for personal利益 exchange by public officials constitutes unconstitutional behavior and openly challenges the democratic system. She advocates that the bill must establish clear conflict of interest safeguards to prevent Congress members, senior executive officials, the President, and Vice President from leveraging their special positions to get rich through the crypto industry. Regarding the current legislative progress, Gillibrand remains cautious, reaffirming that this is a red line that cannot be crossed. If the moral clause cannot be agreed upon within the next week with Republicans, the White House, and congressional allies, the bill will face difficulties moving into subsequent markup stages.

Image source: Axios U.S. Democratic Senator Kirsten Gillibrand

Trump family business becomes focus, conflict of interest disputes heat up Congress

Although Gillibrand did not directly name names in her speech, public opinion generally believes that the primary target of this moral clause is President Donald Trump and his family’s extensive cryptocurrency ventures. According to Bloomberg estimates, Trump has already gained at least $1.4 billion from his meme coins, family-led decentralized finance (DeFi) projects, stablecoin project “World Liberty Financial,” and other related businesses.

• Related news: Bloomberg exposes insider details of Trump family’s crypto assets: $1.4 billion annual revenue, nearly 20% of total

This phenomenon of a president also being a crypto entrepreneur has sparked concerns in Congress about national security and foreign interference, especially after a related investment involving the United Arab Emirates (UAE) was revealed, intensifying scrutiny.

The Senate Agriculture Committee had pushed its version of the crypto bill in 2025, but it was opposed by Democratic members because it did not include an amendment banning federal officials from trading digital assets. Currently, the “CLARITY Act” is under the control of the Senate Banking Committee.

Although Chairman Tim Scott has stated that moral clauses are outside the jurisdiction of his committee, Democratic members within the committee have signaled that if conflict of interest solutions are not provided, they will collectively oppose any votes to advance the bill. This political integrity battle has pushed the crypto legislation into the spotlight of public trust.

Three core obstacles remain, with stablecoin yield compensation reaching a consensus

In addition to the highly关注的 moral clause, Gillibrand also listed two other key issues that must be resolved before the “CLARITY Act” enters the voting stage: consumer protection and anti-illicit financing measures.

On consumer protection, Gillibrand insists that the bill must preserve the enforcement rights granted to consumers by state laws to ensure comprehensive legal safeguards. Regarding combating illicit financing and terrorist funding, law enforcement agencies are at an impasse with the crypto industry. Authorities believe the current bill overly protects DeFi software developers, which would hinder efforts to combat criminal networks. Gillibrand calls for industry and government cooperation to develop tools that both safeguard innovation and enable law enforcement to respond effectively to illegal activities.

The issue of stablecoin yield compensation, once seen as the biggest obstacle, has shown signs of a breakthrough. Gillibrand revealed that a compromise plan led by Senators Thom Tillis and Angela Alsobrooks has taken shape. Although banking industry concerns about high stablecoin yields causing deposit outflows and crypto firms’ worries that overly strict restrictions could harm market competitiveness remain, Gillibrand believes this is a politically acceptable and practical compromise. With this controversy resolved, legislative focus has shifted entirely to balancing law enforcement needs with political moral standards.

Legislative window entering final countdown, ultimate showdown before August recess

As the 2026 midterm elections approach, Congress’s legislative timetable is rapidly shrinking. Gillibrand predicts that if negotiations proceed smoothly, the “CLARITY Act” could be voted on before the summer recess begins around August 10. Senate Banking Committee Chairman Scott also signaled optimism, stating that the committee is in the final negotiation phase and hopes to hold a bipartisan markup in May.

However, if no breakthrough is achieved before Memorial Day on May 21, and subsequent integration with the Senate Agriculture Committee’s draft is delayed, the legislative window could extend into September, or even stall due to election factors.

Several lawmakers warn that this is a race against time. If the “CLARITY Act” fails to pass this session, rules for the U.S. crypto market could be delayed until 2029 or even 2030. Market predictions from Polymarket show a 65% chance of passage before the end of 2026, while Kalshi estimates about a 49% chance of passing before August.

Image source: Polymarket prediction market Polymarket shows a 65% chance of the bill passing before the end of 2026

For the crypto industry, these next two weeks will be critical in shaping future regulations for years to come. As Summer Mersinger, CEO of the Blockchain Association, stated, although legislative opportunities may still arise in the future, seizing the current moment is key to ensuring industry development amid a volatile political environment.