The CLARITY Act is 80-85% done on substance, but ethics rules tied to Trump's crypto ventures block Senate passage. Nage sees a July floor vote if the standoff ends.
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The CLARITY Act, the most advanced U.S. digital asset market structure bill in years, is stuck on a problem that has nothing to do with crypto regulation. The final obstacle is ethics rules aimed at elected officials and senior government leaders profiting from crypto businesses they oversee.
David Nage, portfolio manager at Arca, spent a week meeting lawmakers and congressional staff in Washington. He said the core policy framework behind the legislation is largely complete. “We are very close,” Nage wrote on X, citing CIO Jeff Dorman. “Call it 80%–85% finished.”
The House passed the CLARITY Act in July 2025. The Senate Banking Committee advanced its version in May by a 15-9 vote. The bill now sits on the Senate calendar awaiting floor action.
Nage listed three remaining items before the legislation can reach the Senate floor. He argued that one of the most contentious issues earlier this year, stablecoin yield, has largely been resolved. The real fight centers on ethics rules.
The issue has become politically sensitive because of scrutiny surrounding President Donald Trump’s family crypto ventures, including World Liberty Financial and other digital asset projects. A Senate Banking Committee amendment introduced by Sen. Chris Van Hollen (D-MD) would have prohibited the president, vice president and members of Congress from participating in crypto businesses. That amendment failed in committee.
Nage noted that Republicans largely opposed the amendment on procedural grounds rather than debating the substance. According to Nage, Senate Democrats are unlikely to provide the votes necessary to clear the chamber’s 60-vote threshold without stronger ethics safeguards.
The White House has reportedly pushed back against provisions perceived as directly targeting President Trump. That standoff has become the central obstacle in negotiations, Nage said.
Nage’s proposal would prohibit crypto business activity across the board for the president, vice president, senior executive branch officials and members of Congress. He expects Senate negotiators to continue working through ethics and enforcement language over the coming weeks.
His base-case scenario calls for a merged Senate package by late June or early July and a Senate floor vote in mid-to-late July. He sees final enactment before Congress leaves for its August recess.
“The substance is done,” Nage wrote. “What’s left is a political optics problem.”
For traders watching regulatory catalysts, the timeline matters. A stalled bill means continued uncertainty for U.S. crypto markets, while passage would remove a major overhang. The next concrete marker is the Senate floor vote, likely in July if the ethics standoff breaks.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.