Progressive groups are targeting Senator Kirsten Gillibrand over her son's crypto firm, complicating the Clarity Act's path to 60 Senate votes.
Progressive groups are targeting Senator Kirsten Gillibrand over her son's new crypto firm, complicating the Clarity Act's bipartisan ethics negotiations.
Indivisible and Demand Progress sent a letter to every Democratic Senate office, Axios reported. They called Gillibrand a "prime example" of a Democratic leader whose conduct "undermines efforts to hold the Trump administration accountable."
The conflict centers on Theodore Gillibrand's American Perpetuals Exchange Corp. APEC raised millions from Ripple co-founder Chris Larsen and plans to offer crypto perpetual futures. Crypto derivatives volume dwarfs spot 4.4x, a Cboe report found. The firm is seeking approval from the Commodity Futures Trading Commission. The CFTC has one commissioner and all of crypto. APEC has also met with SEC-CFTC Harmonization Initiative staff.
An agreement on ethics provisions was already in place between the White House and Senator Cynthia Lummis. Bernie Moreno also signed on. The pushback from progressive groups complicates an already delicate negotiation.
Republican lead negotiator Thom Tillis said the ethics agreement is "not quite there," pointing to exemptions in the bill text. The Clarity Act, which sets federal rules for crypto market structure, needs 60 votes to pass the Senate. The 60-vote threshold means every Democratic senator is a potential hurdle. The progressive letter aims to make Gillibrand's vote a liability.
Gillibrand chairs the Democratic Senatorial Campaign Committee. The letter puts her in a difficult position as Democrats negotiate ethics rules with Republicans.
Despite the political noise, prediction market odds for the Clarity Act becoming law in 2026 jumped above 50% for the first time in weeks. The shift followed comments from Coinbase Vice Chair Ryan VanGrack and Treasury Secretary Scott Bessent. The jump in odds reflects confidence the bill still has White House backing and a Republican majority in the Senate, traders said.
The next draft of the bill is expected in the coming weeks. Tillis said the ethics agreement is "not quite there."
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