Trump approves ethics clause, unlocks CLARITY bill

The White House approves the ethics provisions of the CLARITY Act, clearing the last hurdle in legislation

The White House has approved the ethics provisions of the CLARITY Act and sent the text to Republican senators, thereby removing the bill's last major hurdle before reaching a full Senate vote. Donald Trump himself has agreed, rekindling hopes of passing the bill before the Senate's summer recess.

Brief summary

On July 21, 2026, the White House sent the text of the Ethics Provisions of the CLARITY Act to Republican senators. The provision is intended to resolve conflicts of interest related to Trump's cryptocurrency income declarations, with a 2025 declaration value of more than $1.4 billion. Republicans have about 18 legislative working days to push the bill through before a recess scheduled to begin in early August.

The moral deadlock has finally come to an end

For months, the CLARITY Act has encountered obstacles that cannot be resolved at the technical level. Now, the White House has accepted a set of ethics clauses and sent them to Republican senators, a development recognized by Donald Trump himself. The core of the standoff is ethics, not market regulation: Democratic Senators Ruben Gallego and Angela Olsbrooks have called for a strict conflict of interest clause that covers presidents, vice presidents and members of Congress.

The origin of the controversy can be traced to the president's personal holdings of cryptocurrency assets. Its 2025 financial disclosures showed digital asset revenue of more than $1.4 billion, which has become a key bargaining chip for Democrats, who believe any clause that lacks real enforcement is unacceptable. That stance influenced the progress of the bill as a whole, although its market structure provisions have received broad bipartisan support.

The news first circulated on social media. Related show host Eleanor Tret wrote that she had confirmed the agreement from multiple industry sources. On-chain analyst Wu Blockchain also confirmed the news, marking the first progress since negotiations broke down in early July.

The CLARITY Act redefines the boundaries of powers and responsibilities between the SEC and the CFTC

The CLARITY Act aims to end a year-long jurisdictional battle between the Commodity Futures Trading Commission and the Securities and Exchange Commission over the characterization of digital assets. The bill stipulates that once the network is deemed sufficiently decentralized, primary regulatory authority for digital commodities such as Bitcoin will rest with the Commodity Futures Trading Commission, while the Securities and Exchange Commission retains jurisdiction over tokens deemed securities.

bill also stipulates that in the event of an exchange bankruptcy, cryptocurrencies held by customers are their personal property, thus filling the legal loopholes exposed by the collapse of Celsius and Voyager. The Senate Banking Committee approved its version by a 15 - 9 vote in May, after spending about ten months merging the House and Senate texts. Details of the compromise remain confidential.

Regulation of market structure has also been praised. During the committee vote, Coinbase's public affairs director called it a "spectacular step forward" for consumer protection, a review that was weighted by the duration of the moral standoff.

The legislative window will close in early August

The current time is more critical than the content of the bill. The Senate must begin its summer recess in the first week of August, giving Majority Leader John Thune only a few legislative weeks to push the bill to a full vote. The Republican Party has 53 seats and needs to win the support of at least seven Democratic senators to reach the 60-vote threshold needed to break a filibuster. During the standoff, market participants are forecast to have a 39% chance that the CLARITY Act will become law in 2026, reflecting real doubts about Washington's ability to make a timely decision.

External groups are exerting pressure. A coalition of law enforcement agencies recently expressed support for the bill, arguing that clear federal rules would help combat cryptocurrency fraud. In addition, Senator Cynthia Loomis publicly called for a full vote in July. There are about 18 legislative working days before the recess, and a revised version of the bill is expected to be announced in the next few days.

All in all, the White House's agreement on ethics provisions has transformed the CLARITY Act from a deadlocked issue into a practical priority for the administration until August. Three driving factors converge here: Trump's direct involvement in the negotiations, support from law enforcement agencies, and the urgency of the agenda. Cryptocurrency regulation in the United States is being integrated into broader legislative trends, which has been reflected in stablecoin-related bills. The next revised version of the text will reveal whether the Senate finally seized the opportunity.