Trump personally approved the ethics clause demanded by Democrats, ending a deadlock over his $1.4B crypto holdings. The CLARITY Act heads to the Senate floor with 18 legislative days left before recess.
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The White House accepted an ethics package for the CLARITY Act and sent the text to Republican senators. Donald Trump personally approved the move, clearing the last major obstacle before a floor vote, according to multiple industry sources cited by Eleanor Terrett, host of Crypto in America.
The deadlock had nothing to do with market structure. Democratic senators Ruben Gallego and Angela Alsobrooks demanded a strict clause barring conflicts of interest covering the president, the vice president, and members of Congress. The demand was tied directly to Trump’s personal crypto holdings. His 2025 financial disclosure values his digital asset income at over $1.4 billion, a number Democrats used to argue that any provision lacking real enforcement teeth was unacceptable. That stance shaped the bill’s trajectory even as its market-structure provisions drew broad bipartisan support.
The CLARITY Act assigns primary oversight of digital commodities like bitcoin to the CFTC, once a network is deemed sufficiently decentralized. The SEC keeps authority over tokens classified as securities. The bill also classifies crypto held by customers as their property in the event of an exchange bankruptcy, a legal gap exposed by the collapse of Celsius and Voyager. Coinbase’s public affairs director called the bill a “spectacular step forward” for consumer protection during the Senate Banking Committee vote in May, which passed 15 to 9.
Time now matters more than the text’s content. The Senate begins its summer recess the first week of August, leaving majority leader John Thune about 18 legislative days to bring the bill to the floor. Republicans hold 53 seats and need at least seven Democratic votes to reach the 60-vote threshold required to break a filibuster. Prediction market bettors gave the CLARITY Act only a 39% chance of becoming law in 2026 while the ethics standoff persisted, a sign of real doubt about Washington’s ability to move before the recess.
Outside pressure is building. A coalition of law enforcement organizations recently endorsed the bill, arguing that clear federal rules would ease the fight against crypto fraud. Senator Cynthia Lummis publicly demanded a floor vote in July. The revised bill text is expected in the coming days.
The ethics agreement turns the CLARITY Act from a stalled issue into a tangible priority for the White House before August. Trump’s direct involvement, law enforcement support, and the calendar deadline all converge. The next version of the text will show whether the Senate finally seizes its chance.
For more on the jurisdictional battle between the CFTC and SEC, see The CFTC has one commissioner and all of crypto.
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