The future of the CLARITY Act remains uncertain as negotiations continue behind closed doors, with one unresolved issue preventing the legislation from moving forward. While many in the crypt
The future of the CLARITY Act remains uncertain as negotiations continue behind closed doors, with one unresolved issue preventing the legislation from moving forward.
While many in the cryptocurrency industry are closely monitoring the bill’s progress, new comments shared by blockchain researcher BankXRP point to a specific disagreement between Democrats and Republicans that must be resolved before the proposal can reach President Donald Trump’s desk.
Blockchain researcher BankXRP highlighted what he described as the “real holdup” surrounding the CLARITY Act, citing comments from former Fox Business journalist Eleanor Terrett.
According to BankXRP’s tweet, the main point of contention centers on whether state attorneys general should have the authority to sue the U.S. Department of Justice over the enforcement of ethics provisions. He noted that Democrats support giving state attorneys general that authority, while Republicans and the White House oppose the proposal.
BankXRP also highlighted Terrett’s view that a breakthrough could come within days. However, he emphasized that any agreement reached by lawmakers would still require President Trump’s approval before the legislation could proceed.
Here's the REAL holdup on CLARITY Act Per Eleanor Terrett: Dems want state AGs able to sue the DOJ on ethics enforcement. GOP + White House say no. A breakthrough could come in days
but it still has to land on Trump's desk first pic.twitter.com/PsZO6vunNf
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) August 2, 2026
In the attached video, Terrett explained that the disagreement focuses on enforcement of ethics rather than the legislation’s broader structure.
She said Democrats are seeking a mechanism that would allow state attorneys general to take legal action if they believe the Department of Justice fails to enforce ethics provisions. Republicans, along with the White House, have resisted that proposal, creating the primary obstacle in the negotiations.
Terrett added that lawmakers continue to discuss what a workable compromise could look like and whether such an arrangement would be practical.
She identified Senator Tom Tillis and Senator Ruben Gallego of Arizona as leading the ongoing discussions to resolve the issue. Terrett also said there could be a breakthrough within the next couple of days if negotiators reach common ground.
Although negotiators may eventually settle on a compromise, Terrett stressed that the process does not end there.
She explained that any proposal emerging from the Senate negotiations must be submitted to the White House for review. According to Terrett, President Trump must approve the final proposal before the legislation can advance, adding that without his support, there would be no bill.
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BankXRP’s post focused on this final hurdle, noting that even if lawmakers resolve their differences, the CLARITY Act cannot move forward unless it receives presidential backing.
The post also generated reactions from users on X. One commenter, Jeff Beach, argued that allowing individual state attorneys general to sue the Department of Justice would not be workable and said he does not believe such a provision will be accepted. Another user, Damoor, suggested that political considerations are contributing to the continued negotiations, saying Democrats do not want President Trump to receive credit for improvements to the U.S. economy.
As discussions continue, BankXRP’s post presents the latest explanation for why the CLARITY Act remains unfinished, while indicating that the coming days could determine whether negotiators can reach an agreement that also satisfies the White House.
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