CLARITY Act faces Senate split over crypto conflict rules

The CLARITY Act has encountered a new Senate dispute over vertical integration rules ahead of its Sep. 15 cloture vote, which requires 60 votes to advance the crypto market structure bill. Summary Democrats want regulators to set conflict-of-interest standards for vertically integrated crypto companies. Republicans support safeguards but fear a future administration could misuse the proposed authority. Senators Cory Booker, Cynthia Lummis, and John Boozman are negotiating the provision. Polymarket traders give the bill a 17% chance of becoming law in 2026. CLARITY Act negotiations focus on vertical integration Politico reported on Sep. 10 that Senate Democrats are pressing for language directing regulators to create standards for vertically integrated crypto businesses, adding another unresolved matter to negotiations over the CLARITY Act. Under the proposal described by Politico, the standards would address conflicts that can arise when one company controls several parts of a crypto transaction or market. Democratic senators have argued that the language follows principles Republicans supported when the legislation moved forward earlier in 2026. In crypto markets, vertical integra...