Senate Banking Committee bill avoids conflicts of interest involving Trump in the cryptocurrency sector

Golden Finance reports that on May 12, according to unfolded., the U.S. Senate Banking Committee’s revised “Clarity Act” explicitly prohibits stablecoin issuers from paying interest or providing economically equivalent returns solely because users hold tokens, closing a key loophole that led Coinbase to abandon support for the bill in January of this year.
The bill incorporates relevant provisions from the “Blockchain Regulatory Certainty Act,” exempting non-custodial DeFi developers and infrastructure service providers from compliance with regulations related to money transfer agencies. The committee’s bill revision review meeting will be held soon.
The bill completely avoids the ethical constraints clauses for federal officials and does not address Trump’s approximately $1.4 billion worth of crypto holdings. Banking institutions believe the bill still poses risks of deposit outflows and financial stability; Democrats and Elizabeth Warren, among others, criticize the bill for lacking conflict of interest rules, making it unacceptable.
Currently, the process of regulatory certainty in the industry has made some progress, but opposition from banks and disagreements between parties on ethical clauses remain, posing potential risks.