White House crypto adviser Patrick Witt defended President Donald Trumps handling of ethics rules tied to the Clarity Act after the legislation failed to advance in the Senate.
Witt said Trump accepted significant restrictions on his crypto interests during negotiations, including provisions that could require him to divest certain holdings or place them in a blind trust. The Senate voted 49-50 on Sept. 15 against advancing the bill.
Ethics Fight Complicates Clarity Act
Witt said Trump‘s crypto holdings became a central issue in negotiations, adding that Democrats focused heavily on the president’s financial interests while lawmakers worked on the legislation.
Related: SECs Uyeda Says Dropping Crypto Cases Helps Protect Agency Credibility
The ethics dispute was one of several issues surrounding the bill. Banking groups also raised concerns about stablecoin provisions, while Witt argued that major banks opposed the rules because stablecoins could compete with traditional deposits and payment services.
Witt also said the administration was prepared to let states pursue certain federal ethics violations involving the president. He described the proposed concessions as an unusually broad set of restrictions.
Regulators Continue Crypto Work
With the Clarity Act stalled, the SEC and CFTC can continue developing crypto rules under their existing authority. Both agencies have pursued regulatory initiatives since the Senate vote.
Trumps financial interests in crypto have also remained part of the debate surrounding the legislation and its ethics provisions.
Related: Ripple‘s David Schwartz Links SEC Experience to Glock’s Connecticut Lawsuit