CLARITY Act Ethics Deal Could Force Trump To Sell Crypto Holdings

Senate Democrats wanted tougher ethics rules and voted for the provision anyway, according to the reports, to prevent conflicts of interest between public officials and crypto businesses. Trump's crypto income drew scrutiny after June financial disclosures showed his family's digital asset enterprises made over $1.4 billion last year. His holdings and businesses sit across the digital asset market.

The CLARITY Act talks have also covered regulatory control and ethics mandates. The ethics provision is one of several unresolved items. Sen. Thom Tillis said earlier that White House negotiators had started reviewing proposed ethics language, with the specific terms still being worked through.

The ethics negotiation is the latest hurdle for a bill that has already faced Senate delays. The measure missed a weekend vote after the Senate failed to file cloture, and Majority Leader John Thune has since filed cloture on a separate bill, leaving the CLARITY Act on hold. Sen. Tim Scott said the first vote on the crypto bill is still possible if the chamber delays its August recess. Sen. Josh Hawley has said he opposes the vote over community bank concerns. No floor date has been set, and the bipartisan ethics proposal has not been completed or released.