Key Insights:
- Trump approved the CLARITY Act ethics language, but Democratic support remains unresolved.
- The Senate needs bipartisan backing before the CLARITY Act can advance to a final vote.
- Updated CLARITY Act text is expected soon as lawmakers race toward the August deadline.
The agreement followed negotiations between the White House and Republican lawmakers over conflict-of-interest rules for senior government officials. While Republicans described the development as progress, Democrats had not yet reviewed the updated text.
CLARITY Act Ethics Language Clears Republican Hurdle
According to Crypto in America’s Eleanor Terrett and Punchbowl News’ Brendan Pedersen, Trump approved the ethics provision on July 20. The revised language was then circulated to a group of Senate Republicans later that day.
The ethics provision became the final unresolved issue delaying the legislation. The crypto bill would create a federal framework for crypto regulation by dividing oversight responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The legislation would place most digital asset oversight under the CFTC. Securities-like digital assets would remain under the SEC. It also includes customer protections during bankruptcy and safe-harbor provisions for decentralized finance developers.
The disputed ethics language would restrict presidents, vice presidents, members of Congress, and other senior federal officials from profiting from digital assets while serving in office.
The issue gained attention after Trump’s July 1 financial disclosure reported about $1.4 billion in crypto-related income during 2025, largely linked to World Liberty Financial and his memecoin.
The proposal was discussed during a July 16 meeting involving Trump, Senators Bernie Moreno and Cynthia Lummis, and White House crypto adviser Patrick Witt. Although no agreement emerged immediately after that meeting, Trump later approved the revised provision.
Democrats Hold the Deciding Votes on CLARITY Act
Despite the White House agreement, Senate Democrats had not yet reviewed the revised legislative text. Their response remains central because Republicans control 53 Senate seats and need at least 7 Democratic votes to reach the required 60.
Republican Senator Bernie Moreno described the proposal as the strongest ethics language included in congressional legislation. The opposing view came from Democratic Senator Ruben Gallego, who called the Republican draft very weak.
Senator Cory Booker also emphasized that bipartisan support remains necessary for the legislation to advance. Senators Chris Murphy, Chris Van Hollen, and Jeff Merkley had already threatened to oppose the bill over ethics concerns at a press conference on Capitol Hill on July 14, 2026.
The updated bill text could arrive within days. It is also possible that a longer wait could improve the chances of securing bipartisan agreement before publication.
Crypto Regulation Timeline Narrows Before August Deadline
The Senate has until the first week of August to consider the legislation before lawmakers leave for recess. If approved by the Senate, the measure would return to the House before reaching Trump’s desk for final consideration.
Patrick Witt has continued leading the White House negotiations. On July 21, he announced that his mandatory Georgia Army National Guard training had been postponed. Meanwhile, his deputy director, Harry Jung, said he would leave the administration in two weeks after serving on the White House Crypto Council.
The agreement could remove a procedural obstacle and allow the updated crypto bill, CLARITY Act, to move forward. However, the next stage now depends on Democratic lawmakers reviewing the revised ethics language and deciding whether it attracts the bipartisan support needed to advance crypto regulation legislation.
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