"The ethics language is still weak," a Senate Democrat stated, reflecting growing skepticism despite President Trump's recent endorsement of the CLARITY Act's ethics provisions. The bill, aiming to regulate the crypto market structure, faces continued resistance as Democratic lawmakers have yet to fully review the revised text and signal their support.
The CLARITY Act advanced after President Trump approved updated ethics measures on July 20, which were promptly shared with Senate Republicans. This provision addresses restrictions on digital asset ownership and trading by the president, vice president, members of Congress, and senior federal officials during their tenure. Republicans view Trump's backing as potentially clearing the path for an imminent Senate vote. However, Senate Democrats remain unconvinced, describing the ethics language as insufficient while bipartisan negotiations continue.
Beyond ethics, the bill delegates primary crypto oversight to the Commodity Futures Trading Commission, reserving securities-related digital asset regulation for the Securities and Exchange Commission. It also includes customer asset protections during bankruptcy and safe-harbor clauses for decentralized finance developers. The controversy intensified following President Trump’s July 1 financial disclosures, which revealed nearly $1.4 billion in cryptocurrency-related income for 2025, largely connected to World Liberty Financial and his memecoin. Additional disclosures last month showing millions received from WLF have fueled debate over the necessity of stringent ethics safeguards.
Lawmakers face an August deadline to finalize the bill’s language. The ethics provision was last discussed in a July 16 meeting including Trump and Senators Bernie Moreno and Cynthia Lummis. As the Senate awaits the final text, Democrats’ hesitation signals ongoing hurdles for the legislation’s passage.
