Bipartisan negotiations on the CLARITY Act have failed to reach an agreement, with the Democratic Party remaining divided on the BRCA provisions.

According to Odaily, crypto journalist Eleanor Terrett has revealed that sources say a small bipartisan group of U.S. senators held consultations last night regarding the CLARITY Act, attempting to push Democrats to compromise on at least two outstanding issues. However, no agreement was ultimately reached.

Senator Cynthia Lummis stated that both sides have agreed on "99% of the bill's contents" and that she hopes Democrats will continue to address the remaining issues after the bill passes the committee review. Otherwise, if another incident like FTX happens in the future, "they will have only themselves to blame."

It was reported that Democratic senators Adam Schiff and Ruben Gallego have continuously pushed to reach a compromise on ethical standards and conflict of interest clauses involving the president's family before the committee review, making this one of the conditions for their support of the bill.

Additionally, some Democratic senators have expressed concerns about provisions related to the Blockchain Regulatory Clarity Act (BRCA). This clause aims to prohibit prosecuting non-custodial software developers under money transmission business laws.

According to sources, both sides have made substantial progress on the issues of ethics and conflicts of interest, but disagreements over BRCA amendments ultimately led to the breakdown in negotiations. The market now generally expects this committee review to show clear partisan divisions.