Ethics agreement breaks months of deadlock
According to a person familiar with the matter, U.S. President Donald Trump has agreed to an ethics clause that could clear the final obstacle for the Senate to vote on the Digital Asset Markets Clarity Act. The agreement was reached late Monday after months of stalled negotiations between the White House, Senate Republicans and Democrats.
This clause deals with how senior officials, including the president, can profit from digital assets while in office. Negotiators from both parties have spent months discussing ethics provisions designed to limit the extent to which presidents, vice presidents, members of Congress and other federal officials can profit from digital assets while in office. The issue came into focus by Trump's 2025 financial disclosure, which showed his cryptocurrency-related revenue was approximately $1.4 billion, of which approximately $636 million came from $TRUMP memein and more than $500 million came from the World Liberty Financial DeFi platform co-founded by his family.
Democrats need to reach the 60-vote threshold to push the bill to overcome a filibuster in the Senate. The Republican caucus has 53 seats, which means that at least seven Democratic lawmakers need to vote to initiate the closing debate process. Senators Ruben Gallego and Angela Olsbrooks had voted in committee for the bill, but said in May they would not support final passage of the bill without the ethics clause.
According to original reports, as of Monday, Democrats had not seen the finalized text of the ethics clause, and the text of the bill is expected to be released within days.
What will the Clarity Act do?
The Clarity Act is officially called H.R. 3633 was passed in the House of Representatives in July 2025 with 294 votes in favor and 134 votes against. The Senate Banking Committee passed the bill with a vote of 15 to 9 on May 14, 2026. The bill would establish the most comprehensive federal regulatory framework for digital assets to date. It would delineate the regulatory jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over spot digital assets. The bill defines when cryptocurrencies should be considered securities and when tokens should be considered commodities. Client asset protection was also included in the framework, a provision that became more urgent after a series of exchange failures exposed the risk of lack of regulatory protection for client funds.
The Senate has until the first week of August to vote on the bill. If passed, the legislation would be sent back to the House and then submitted to Trump's desk. TD Cowen warned that if the ethics clause deadlock continues beyond the August recess, the bill could be delayed until 2027. Addressing the ethics clause is seen as the last major issue that can currently hinder the bill's advancement.

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