The CLARITY Act entered another phase after President Donald Trump agreed to an ethics provision tied to the crypto market structure bill, a move that Republicans say could remove the final legislative hurdle before a Senate vote.
However, this development did not immediately resolve the bill’s biggest challenge. Democrats had not yet considered the updated text, and several proposals indicated their support would depend on whether the new provisions met their expectations.
The CLARITY Act faces democratic resistance despite White House agreement
According to reporting by Eleanor Terrett of Crypto in America and Brendan Pedersen of Punchbowl News, Trump approved the revised ethics language on July 20 and the proposal was distributed to a group of Senate Republicans later that day.
The ethics provision became the latest unresolved issue after negotiations negotiated broader digital asset regulations contained in the bill. The measure would hand most crypto oversight to the Commodity Futures Trading Commission while leaving securities-related digital assets under the purview of the Securities and Exchange Commission.
It also includes protections for customer assets during bankruptcy proceedings and protective provisions for developers of decentralized financial services.
The ethics language concerns the extent to which the president, vice president, members of Congress, and other high-ranking federal officials can acquire, hold, trade, and profit from digital assets while in office.
The controversy came to light after President Trump released his financial disclosures on July 1, revealing that he received nearly $1.4 billion in cryptocurrency-related revenue in 2025, most of which was tied to World Liberty Financial and its memecoin.
Last month, financial disclosures revealed that Trump took millions of dollars from WLF, fueling debate over ethics protections.
This provision was previously discussed in a July 16 meeting involving Trump, Senators Bernie Moreno and Cynthia Lummis, as well as White House crypto advisor Patrick Witt.
Senate divided on updating ethics language
The updated provision was called a “big step forward” by Republican business owners. Sen. Bernie Moreno called it the strongest ethical language included in any legislation passed by Congress.
Democratic lawmakers had a different view. One of two Democrats to vote to advance the bill out of committee, Sen. Ruben Gallego called the Republican idea very weak.
Separately, Senator Cory Booker also stressed that only a bipartisan agreement could move the legislation forward, while another group of Senate Democrats have already threatened to block the measure.
Senate schedule shrinks as bill text awaits release
Republicans currently control 53 seats in the Senate, of which they will need at least seven Democrats to ensure passage of the CLARITY Act. According to the latest count, no Democratic senator has publicly approved the amended ethics text.
The text of the bill, as reported by Cryptopolitan, could be available within a few days, although entrepreneurs may take longer to agree on the final version. The Senate is expected to recess around Aug. 8 for the month of August, giving Majority Leader John Thune a limited opportunity to hold a floor vote.
Meanwhile, White House crypto adviser Patrick Witt, who led negotiations on the measure, said his previously planned training with the Georgia National Guard had been postponed. His deputy director, Harry Jung, also announced his intention to leave the administration in two weeks.