CLARITY Act Senate Vote Set for Sept. 15, Ethics Is the Hurdle

Why Ethics Is the Biggest Hurdle

The ethics provisions carry the greatest risk among the bill's open items, Carbone said. "Ethics is the biggest challenge by far. You're not gonna get sixty if you don't have ethics figured out. Ethics is the linchpin here," he said.

Senators Thom Tillis and Ruben Gallego sent new ethics language to the White House before the August recess. That language remains under review. "We have not heard any public comment from the White House," Carbone said. He added that the White House's earlier, more expansive ethics language was rejected by Democrats early on.

BRCA is "in a good place," Carbone said. Recent support from law enforcement groups has helped build bipartisan backing for the provision. "I feel pretty good about the support we have in the Senate," he said. He acknowledged the industry still needs to do more direct education with senators outside the Banking Committee, who are hearing from community bankers with decades-long relationships.

Carbone framed the moment as a narrow window for the US to lead on crypto policy. "If we don't do this now, other countries are going to continue to do this," he said, pointing to how Europe fell behind the US during the dot-com boom. "This crypto needs to be the next frontier where the US leads from the very beginning… We can't squander this chance."

The industry would still have a path forward if the bill fails, Carbone said, pointing to rulemaking at the SEC and CFTC under Paul Atkins and Michael Selig. "But we need the durability of legislation," he said. "Now is the time."