Trump accepts ethics limits for CLARITY Act; Democrats decide

President Donald Trump approved proposed ethics language tied to the Digital Asset Market Clarity Act after a White House meeting last week, according to Republican senators involved in the talks.

Republican Sens. Bernie Moreno of Ohio and Cynthia Lummis of Wyoming met with Trump and White House crypto adviser Patrick Witt to present the language. Moreno described the text as “the most aggressive ethics language” in U.S. history. Democratic negotiators had not reviewed the newly approved language when Trump’s decision was reported.

The CLARITY Act would set a federal framework for digital-asset markets by expanding Commodity Futures Trading Commission oversight of digital commodities while preserving Securities and Exchange Commission authority over securities. The bill would impose registration and customer-protection requirements on crypto intermediaries. The House approved an earlier version of H.R. 3633 by a 294-134 vote in July 2025. The Senate Banking Committee advanced the Senate version 15-9 on May 14, with Sens. Ruben Gallego of Arizona and Angela Alsobrooks of Maryland joining Republicans on the committee vote.

Republicans need additional Democratic support to overcome a filibuster, which generally requires 60 votes in the Senate. Lawmakers on the committee have indicated their votes at markup do not guarantee support for final passage on the floor. Alsobrooks has urged an ethics agreement that covers the president, vice president and members of Congress and has flagged outstanding issues on illicit-finance provisions.

The ethics negotiations gained attention because Trump’s 2025 financial disclosure reported more than $1.4 billion in income connected to family cryptocurrency ventures, including World Liberty Financial and companies tied to the TRUMP memecoin. About $800 million in proceeds were linked to World Liberty. Those figures have prompted calls for limits on how officials and their families may profit from crypto-related business ties.

Other policy disputes remain unresolved. Senators are negotiating language on decentralized finance, illicit-finance controls, registration procedures and the split of regulatory authority between the CFTC and the SEC. The Senate bill contains provisions that fall under the Agriculture Committee’s jurisdiction, which could require additional review if changes are made in the Senate and reconciliation with the House becomes necessary.

The Senate calendar places pressure on negotiators. Lawmakers begin a state work period on Aug. 10, leaving the remainder of July and the first week of August as the primary window to assemble votes and finish negotiations. Lummis has urged action before senators leave Washington.

Industry groups and market participants have kept up pressure for a final agreement. Kristin Smith, president of the Solana Policy Institute, described ethics as the largest remaining issue and argued restrictions should apply across government. A prediction-market contract on whether CLARITY will become law in 2026 rose to about 42% from roughly 32% after reports of Trump’s acceptance.

An ethics accord accepted by the president removes a major point of contention in negotiations but does not resolve other policy differences or secure the votes needed for final passage. Senate Democrats must now review the approved language and decide whether to provide the additional support required to clear procedural hurdles and complete the legislative process before the August recess.