White House approves ethics rules in market structure bill

The White House reportedly reached an agreement on ethics provisions of the Digital Asset Market Clarification Act

According to media reports, the White House has reached an agreement on ethics provisions in the Digital Asset Market Clarification Act (CLARITY Act), a bill currently awaiting a possible Senate vote. The progress is seen as a possible way to win the support of at least some Democratic lawmakers-an outcome that could be decisive in the Senate, which requires broad consensus to pass.

According to a report on Tuesday, White House officials met with Republican Senators Cynthia Loomis and Bernie Moreno to agree on the bill's ethics provisions. The two senators have not publicly detailed the terms of the agreement, but reports suggest that the results could also affect how U.S. President Donald Trump's cryptocurrency-related investments are viewed at the political level.

Key Points

The White House is reportedly working to finalize ethics provisions in the CLARITY bill after meeting with Senators Cynthia Loomis and Bernie Moreno. Winning some Democratic support is important because the Senate is expected to face a tough vote that may require 60 votes to pass. Many Democrats have previously said the CLARITY bill would be "worthless" without ethics provisions addressing conflicts of interest in Trump's association with the cryptocurrency industry, including his memecoin and his family business World Liberty Financial. Although the House of Representatives passed the CLARITY bill in July 2025, delays related to the government shutdown and unresolved policy issues have left the Senate's process uncertain.

Why ethics clauses become key thresholds

The CLARITY bill is positioned as an important measure for the United States to establish rules for the structure of cryptocurrency markets. The House passed the bill in July 2025 as part of the Republican "Cryptocurrency Week" agenda, but the Senate timetable has been complicated by multiple delays. The controversy is said to have involved lawmakers 'concerns about ethics clauses, tokenization and rewards related to stablecoins, and requirements to protect developers from potential enforcement actions.

The main political friction in the Senate seems to be centered on issues of ethics and conflicts of interest, especially those related to the Trump administration. Earlier reports pointed out that Trump urged the Senate to pass the CLARITY bill "in the name of the late Senator Lindsay Graham" and said Graham was a major supporter of the bill. However, several Senate Democrats made clear they would not consider the legislation complete without additional safeguards. According to reports, senators including Elizabeth Warren, Chris Murphy, Jeff Merkley and Chris Van Hollen said any CLARITY bill that lacked ethics provisions for conflicts of interest in Trump's association with the cryptocurrency industry, including his memecoin and family businesses, would be "worthless."

Senate schedule is uncertain, vote prospects are unclear

Even though ethics provisions are said to have been agreed, it is unclear whether the CLARITY bill can achieve the threshold that typically requires 60 votes to overcome procedural obstacles. The bill's future depends on whether enough lawmakers, especially Democrats, believe that the ethics clause will be sufficient to address their concerns. As of Tuesday, a vote on the CLARITY bill was reportedly not scheduled on the congressional schedule, and the text of the bill had not been made public. This lack of transparency may further hinder support: MPs often need to obtain full wording before they can credibly assess whether amendments actually address the specific moral hazard they raise.

There were separate reports that a request had been made to Loomis's office for details of the agreement, but there was no immediate response, indicating that the details of the negotiations had not yet been made public.

Administration statement: Most comprehensive ethics provisions

Although details of the purported agreement have not yet been released, a White House official told the media that the administration is committed to advancing the CLARITY bill and said it has agreed to "the most comprehensive and broadest ethics provisions in history." The official also described the process as a positive response to Democratic concerns, saying the administration had "tried its best to meet (Democrats) concerns." At the same time, opposition has not disappeared. Many Democrats believe it is necessary to hold a hearing before the vote to review Trump's cryptocurrency investments and related connections. The calls reflect broader concerns that even with improved wording, lawmakers may still want hearings to establish formal records and conduct additional review to determine whether conflicts of interest still exist.

According to reports, Coinbase Vice President Ryan Van Gelak said Democrats have successfully negotiated customer protection provisions in the Senate version of the bill. However, progress in this policy area does not appear to resolve the ethical controversy that remains a key driver of uncertainty.

Cryptocurrency market reaction tracks political progress

According to reports, Bitcoin rose during the news, breaking above $66,000 in early trading on Tuesday, hitting a seven-week high. Traders linked the trend to news of the ethics agreement and independent developments in Trump's plan to impose an additional 10 percent international trade tariff. In social media comments, Michael van der Popp, founder and chief investment officer of MN Fund and MN Capital, attributed the rise to market expectations that the CLARITY bill might be approved. This observation highlights that some market participants closely link short-term price movements to U.S. regulatory and legislative progress, especially when bills are characterized as shaping the way cryptocurrency markets operate.

Follow-up concerns

Investors and industry builders should focus on whether the text of the Senate bill is made public and whether members 'concerns-especially ethical concerns-are reflected in verifiable drafts. The next critical juncture is not only whether the CLARITY bill can be advanced procedurally, but also whether enough senators are willing to make commitments before the final vote amid ongoing questions about conflicts of interest and the adequacy of proposed safeguards.