
Polymarket odds on the Clarity Act rose to 43% after reports Trump agreed to an ethics clause. The Senate faces an early August deadline to vote.
The implied probability that the Clarity Act becomes law in 2026 hit 43% on Polymarket Monday, up from 32% on Friday, its lowest since the prediction market opened in January. The jump followed reports that President Donald Trump had agreed to move forward with an ethics clause that had stalled negotiations on the bill, also known as the crypto asset market structure bill.
Eleanor Terrett, a reporter covering the story, wrote on social media that multiple industry sources said the White House had settled on an ethics package and sent the language to certain Senate Republicans that afternoon. The details of the agreement remained unclear, and no version had been officially published.
A source close to the process told media outlets that a preliminary agreement was reached with Trump on the ethics point, though Democrats had not yet seen the text. The White House and the offices of the senators involved did not confirm the details. The same source indicated a draft could be released at any moment.
The pending dispute revolves around how much officials and political figures can benefit from cryptocurrencies while holding public office. That is a sensitive issue given Trump's ties to his own memecoins and his family's involvement in World Liberty Financial.
The matter was discussed on July 16 at a meeting between Trump, Republican senators Bernie Moreno and Cynthia Lummis, and White House crypto adviser Patrick Witt. The Senate has until early August to vote on the Clarity Act.
Polymarket traders have now placed about $1.9 million in volume on the contract, making it one of the most active political prediction markets related to crypto regulation. The odds had been sinking for weeks as the ethics clause dispute dragged on, hitting the 32% trough on Friday.
For market participants, the Clarity Act's passage would mark the first major U.S. federal crypto market structure law, potentially giving digital asset exchanges clearer rules on token classification, custody, and stablecoin oversight. A failure to pass before the August recess would push the timeline into the fall, when the presidential election campaign could further complicate negotiations.
The Senate Banking Committee has not yet scheduled a markup of the final text. The source close to the process said the next 48 hours would be critical for determining whether the bill reaches the floor before the break.
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