- White House agrees to ethics package for the Digital Asset Market CLARITY Act and sends language to Senate Republicans.
- Trump personally signs off on provisions addressing officials’ conflicts of interest in digital assets.
- CLARITY Act clarifies jurisdiction with CFTC for decentralized commodities like Bitcoin and SEC for security tokens; protects customer crypto in bankruptcies.
- Senate committee approved 15-9 in May 2026; bill needs 60 votes before first week of August recess.
- Trump’s $1.4 billion crypto income in 2025 disclosures heightened ethics negotiations involving World Liberty Financial.
President Donald Trump has agreed to ethics provisions for the Digital Asset Market CLARITY Act, removing the last significant barrier to moving the landmark cryptocurrency regulation bill forward in the Senate.
The agreement was reached after months of negotiations and a July 16 meeting that initially failed to produce a deal. The Block reported an industry source saying, “We are now hearing Trump has agreed to an ethics provision.”
Eleanor Terrett reported hearing from multiple industry sources that the White House agreed on an ethics package and sent the language to certain Senate Republicans this afternoon, with participants hopeful it could clear the way for updated bill text soon.
The CLARITY Act represents the first comprehensive federal effort to regulate the digital asset industry. It would assign the CFTC primary jurisdiction over sufficiently decentralized digital commodities, including bitcoin, while leaving the SEC in charge of security tokens. Additionally, the legislation would establish customer-owned crypto as customer property in exchange bankruptcy cases, providing clearer protections than seen in prior collapses.
The bill cleared the Senate Banking Committee on a 15-9 vote in May 2026. Progress had been hampered by disputes over ethics rules designed to prevent presidents, vice presidents, lawmakers, and federal officials from profiting from digital assets while in office. These issues gained prominence following disclosures of Trump’s more than $1.4 billion in 2025 crypto-related income, much connected to World Liberty Financial.
Republican Sens. Bernie Moreno and Cynthia Lummis, along with White House adviser Patrick Witt, have been central to the talks. With the ethics hurdle cleared, attention now turns to releasing the updated bill text and securing the necessary votes in the Senate, where Republicans hold 53 seats but need 60 to advance past a filibuster.
Bitcoin.com News indicated that the Senate has limited time, with recess looming in the first week of August, and prediction markets previously showing about 39% odds for 2026 passage.
Although this marks substantial progress toward regulatory certainty that could support broader institutional participation in crypto markets, the absence of public details on the ethics language and the requirement for bipartisan support introduce ongoing uncertainty. Stakeholders will watch closely for the bill text and any further amendments in the coming days.
