Latest news: Sen. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach an agreement on ethics provisions and other outstanding issues.
- Alsobrooks said ethical concerns remain a major sticking point, along with the illicit finance provisions and the work still needed in the Agriculture Committee.
- She characterized her committee’s vote to advance the bill as support for continuing bipartisan negotiations, not unconditional support for final passage.
- “We’re almost there, but we’re not there yet,” Alsobrooks said of the negotiations.
- Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.
The commitment: Alsobrooks defended stablecoin performance language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.
- She said she was one of the first senators to express concern that allowing interest-bearing stablecoins could trigger a run on deposits from community banks.
- According to Alsobrooks, negotiators spent about nine months crafting language that prohibits crypto companies from paying returns solely on stablecoin balances and prevents companies from offering products that mimic bank accounts without bank-like protections.
- He argued that the final compromise balances industry innovation with consumer and banking sector protection, even if neither side is completely satisfied.
Why it is important: Alsobrooks framed cryptocurrency regulation as a response to growing consumer adoption rather than a speculative debate about future policies.
- He noted that tens of millions of Americans already own cryptocurrencies and said lawmakers have a responsibility to establish consumer protections.
- The senator argued that digital assets represent an economic opportunity that many younger Americans believe they need as traditional paths to wealth become less attainable.
- He said the goal is to ensure the United States remains a leader in digital asset innovation while protecting consumers from harm.
Reading between the lines: Alsobrooks suggested that Democratic skepticism toward cryptocurrency legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.
- He flagged concerns involving President Trump’s business interests and broader questions about ethics in the digital asset space.
- He said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
- Alsobrooks argued that staying involved in negotiations is the best way to ensure voters have a say in formulating the final rules.
What comes next: The senator outlined a short list of priorities needed to get the legislation over the finish line.
- Negotiators must finalize ethical provisions acceptable to both parties.
- Lawmakers are still working on illicit finance language championed by Sen. Catherine Cortez Masto.
- The Agriculture Committee must also reach a bipartisan agreement before final consideration can continue in the Senate.
