- Trump backs Clarity Act ethics language, clearing a key hurdle before Senate action.
- Ethics rules target officials’ crypto interests as lawmakers await final bill text.
- The Clarity Act would establish the first federal crypto market structure framework.
President Donald Trump has agreed to support ethics language tied to the Clarity Act, a move that could remove the final obstacle delaying the Senate’s consideration of the long-awaited crypto market structure legislation.
The agreement follows months of negotiations between the White House and lawmakers over rules governing how senior government officials may engage with digital assets while in office.
Ethics Agreement Clears a Major Legislative Hurdle
Trump approved the ethics provision on Monday after negotiations that stretched over several months. The ethics issue had remained the primary unresolved element preventing the Clarity Act from advancing. The proposed legislation would establish the first comprehensive federal regulatory framework for digital assets while defining oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The provision was discussed during a July 16 meeting involving Trump, Republican Senators Cynthia Lummis and Bernie Moreno, and White House crypto adviser Patrick Witt. While no agreement emerged immediately after the meeting, Trump later approved the ethics language.
Negotiations Focused on Officials’ Crypto Interests
Throughout the negotiations, lawmakers and White House officials worked on provisions intended to limit how presidents, vice presidents, members of Congress, and other federal officials could profit from digital assets while holding office.
The debate centered on Trump’s memecoins and his family’s company, World Liberty Financial. Financial disclosures released last month showed that Trump received millions of dollars tied to the company, which has increased attention on the need for ethics safeguards in the legislation.
With the ethics language now agreed, Senate negotiators are expected to finalize the revised text of the Clarity Act before bringing it to the floor. Lawmakers are working against the congressional calendar, with the Senate aiming to advance the legislation before the August recess. If approved, the bill would represent the first comprehensive federal framework for regulating digital assets in the United States.
Related: Senate Republicans to Meet Trump as Clarity Act Talks Continue
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