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Sources said Senate insiders have proposed plans to strengthen ethics provisions in the Clarity Act

2026-07-31 00:17:25
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Two senators-each from both parties-are trying to make last-minute changes to the ethics provisions of the largest cryptocurrency bill in U.S. history, a move that could undermine the White House's fragile compromise plan and cast a new shadow on the bill's future. According to people familiar with the matter, the two bipartisan lawmakers are drafting language aimed at further tightening restrictions on encryption activities that President Trump has previously agreed to, hoping to win enough votes in favor with a stricter stance. Their goal is directed at the so-called "Trump-Approved Ethics Provisions" section of the Clarity Act-a huge bill designed to establish a viable federal regulatory framework for digital asset markets. The clause was once seen as a concession to the administration, allowing certain activities to continue under broad regulatory barriers. Now, Senate insiders say the two lawmakers want to tighten those restrictions further-possibly narrowing decentralization agreement exemptions or raising compliance thresholds for stablecoin issuers. The exact wording has not been made public, but the intention is to strengthen the bill's position before it enters the voting process.

Bill on the brink

The Clarity Act has experienced many near-death moments. Just days earlier, the industry was caught off guard by the bank lobby while pushing amendments that sought to weaken key custody and capital reserve provisions. This last-minute moral clause bet has added new variables. If the stricter wording can win the support of several wavering senators, the bill could gain the momentum it needs. But if the move causes the White House to withdraw its support or pro-crypto lawmakers to oppose new restrictions, the entire bill could stall.

What is eye-catching about this move lies not only in the content itself, but also in the timing. At the last minute before a vote, amending a bill's ethics provisions often means leadership is looking for votes. The rewrite by the two lawmakers suggests they believe the current compromise is not enough to allay concerns about conflicts of interest and the potential for industry capture by regulators-which will oversee digital assets. By tightening restrictions, they are effectively betting that a stricter regime will attract moderates who are worried about the impact of the industry.

What the market is focusing on

For traders and developers, the Clarity Act is not Washington's abstract drama. The bill will determine how exchanges classify tokens, what disclosure requirements the DeFi protocol needs to comply with, and whether stablecoin reserves enjoy the same treatment as bank deposits. The wording of last-minute strengthening of ethics clauses may affect these operational details and even rewrite the responsibilities of developers and compliance officials.

At the same time, the developer community continues to deliver code on various chains that will fall under the scope of the bill. Networks such as Ethereum, Solana and Avalanche were among the most active blockchains this week, a reminder that the legislative game is unfolding while the underlying technology is still evolving. If ethics clauses are rewritten to add new audit requirements or personal liability for core contributors, it may slow down development in ways that market participants have not yet priced.

However, much depends on how the White House views the change. Trump's concessions were reinforced by Congress-a turn that was enough to unravel a fragile alliance. The next 72 hours will reveal whether the two lawmakers 'ideas were a masterstroke to win votes or a miscalculation to open another door to the bank lobby.

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