Key facts
- President Donald Trump has agreed to an ethics provision in the CLARITY Act.
- The provision aims to prevent federal officials from profiting from digital assets while in office.
- This agreement removes a significant obstacle for the crypto market structure bill to advance toward a Senate vote.
- The White House has sent the agreed-upon ethics language to certain Senate Republicans.
- Revised bill text is expected to be released soon.
President Donald Trump has agreed to an ethics provision within the CLARITY Act, a development that removes a significant obstacle to the crypto market structure bill's progress toward a Senate vote. This provision aims to prevent presidents, vice presidents, members of Congress, and other federal officials from profiting from digital assets during their tenure in office.
The agreement was reached between the White House, Senator Cynthia Lummis, and Senator Bernie Moreno, according to Punchbowl News. While the legislative language has been shared with some Senate Republicans, the specific details of the consensus remain undisclosed. Industry sources suggest that after months of negotiations, a compromise on the ethics terms has been achieved, with President Trump giving his approval late Monday.
Democrats, led by Senator Elizabeth Warren, had previously refused to support the CLARITY Act unless it barred public officials and their families from profiting from crypto. This demand was amplified after Trump disclosed over $1.2 billion in cryptocurrency income, with Democrats labeling the bill as "corrupt." The White House's reported agreement on ethics language is seen as removing the primary objection that has prevented the bill from securing the necessary seven-plus votes to clear the 60-vote threshold in the Senate.
Industry participants are hopeful that this breakthrough will lead to the release of updated bill text soon. Polymarket's odds for the CLARITY Act being signed into law in 2026 increased to 42% following the news, though they remain significantly down from previous highs. Some analysts believe that if the bill passes, it could unlock substantial institutional and investment capital currently on the sidelines, potentially driving Bitcoin and other cryptocurrencies to new all-time highs.