Congress can still ‘land this plane’ on crypto bill as ethics talks stall, says Democratic Sen. Gallego

Democratic Senator Ruben Gallego, a crucial negotiator on the Clarity Act, maintains optimism about Congress "landing this plane" as the unfinished ethics deal continues to draw attention. Speaking at the SALT conference in Wyoming, Gallego emphasized that multiple versions of an ethics provision have been sent to President Donald Trump without success. Gallego detailed that the White House's responses have been either blank, delayed, or entirely absent.

The ethics agreement is considered the final hurdle for the landmark crypto legislation known as the Clarity Act to become law. Over the past year, concerns regarding Trump's expanding crypto holdings and business interests have overshadowed negotiations. In July, Trump consented to an ethics provision that would prevent public officials or their spouses from issuing or sponsoring digital assets.

The language assigns enforcement to the Department of Justice, not state attorneys general, with a sunset provision in January 2029, leading to criticism from Democrats who found it insufficient.

Gallego explained that achieving the necessary 60 votes to advance the Clarity Act in the Senate still depends on reaching a consensus on ethics legislation and addressing other outstanding issues. These include the treatment of stablecoin yield and whether the bill goes far enough to combat illicit activity. The White House has not yet provided a comment on the progress with the ethics language.

As Congress returns to Washington next month, there are only a few weeks left to advance the bill. Senate Majority Leader John Thune had scheduled an initial procedural vote for September 15. Gallego acknowledged that some political elements may prefer to keep the matter as a political issue, but there are those who are genuinely interested in governing and ensuring continued innovation in the crypto space.