Trump Backs Ethics Provision, Leaving CLARITY Act Democrats Unconvinced

The CLARITY Act hit a new inflection point after President Donald Trump agreed to an ethics provision tied to the crypto market structure bill, a move Republicans said could clear the last legislative hurdle before a Senate vote.

Democrats had not yet reviewed the updated language, and several lawmakers said their support would depend on whether the new provisions met their expectations. That gap leaves the bill's path uncertain despite the White House's concession.

According to reports from Crypto in America's Eleanor Terrett and Punchbowl News' Brendan Pedersen, Trump approved the revised ethics language on July 20. The proposal was distributed to a group of Senate Republicans later that day.

The ethics provision became the final unresolved issue after lawmakers negotiated broader digital asset regulations contained in the bill. The measure would assign most crypto oversight to the Commodity Futures Trading Commission while leaving securities-related digital assets under the Securities and Exchange Commission. It also includes protections for customer assets during bankruptcy proceedings and safe-harbor provisions for decentralized finance developers.

The ethics language governs how the president, vice president, members of Congress, and other high-ranking federal officials can acquire, hold, trade, and profit from digital assets while in office.

The controversy gained traction after Trump released his financial disclosures on July 1, which showed nearly $1.4 billion in cryptocurrency-related income in 2025, most of it tied to World Liberty Financial and his memecoin. Last month, additional disclosures revealed Trump had taken millions of dollars from WLF, intensifying the debate over ethics protections.

The provision was discussed during a July 16 meeting involving Trump, Senators Bernie Moreno and Cynthia Lummis, and White House crypto adviser Patrick Witt.

Republican lawmakers called the updated provision a major step forward. Senator Bernie Moreno described it as the strongest ethics language included in any legislation passed by Congress.

Democratic legislators disagreed. Senator Ruben Gallego, one of just two Democrats who voted to advance the bill from committee, called the Republican proposal very weak. Senator Cory Booker emphasized that only a bipartisan agreement could move the legislation forward, while another group of Senate Democrats has already threatened to block the measure.

Republicans control 53 seats in the Senate. They need at least seven Democrats to secure passage of the CLARITY Act. As of the latest count, no Democratic senator has publicly endorsed the amended ethics language.

The bill text may be available within a few days, according to Cryptopolitan, though it could take longer for lawmakers to agree on a final version. The Senate is scheduled to take a break around Aug. 8 for the month of August, giving Majority Leader John Thune a limited window to set up a floor vote.

White House crypto adviser Patrick Witt, who has led negotiations on the measure, said his previously scheduled training with the Georgia Army National Guard had been postponed. His deputy director, Harry Jung, announced plans to leave the administration in two weeks.