The White House has agreed on ethics language for the Digital Asset Market CLARITY Act and shared it with Senate Republicans, according to Fox Business journalist Eleanor Terrett, a potential breakthrough after months of deadlock over conflict-of-interest provisions that had stalled the bill’s path to a Senate floor vote.
The development follows months of negotiations that had stalled over ethics concerns rather than the bill’s core regulatory framework. While lawmakers from both parties broadly supported the legislation’s market structure reforms, disagreements over safeguards addressing public officials’ crypto holdings repeatedly delayed progress.
Crypto journalist Eleanor Terrett first reported the breakthrough on X, writing:
“I have been hearing from multiple industry sources that the White House has agreed on an ethics package for the Clarity Act and sent the language to certain Senate Republicans this afternoon.”
The report was later confirmed by Wu Blockchain, which also stated that Trump had personally signed off on the ethics language, removing what negotiators described as the bill’s final major political hurdle.
White House breakthrough revives long-stalled legislation
The Clarity act ethics debate has dominated discussions surrounding the legislation for months, overshadowing what many lawmakers consider one of the most important crypto regulatory proposals in U.S. history.
Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland had insisted that any market structure legislation include meaningful conflict-of-interest provisions covering the president, vice president, and members of Congress before they would consider supporting the bill.
Those demands gained momentum after President Trump’s 2025 financial disclosure revealed more than $1.4 billion in reported digital asset-related income. The disclosure intensified Democratic concerns that lawmakers should establish stronger ethics safeguards before advancing legislation that could significantly reshape the cryptocurrency industry.
Until now, the White House had resisted approving the proposed language, creating a stalemate that effectively froze negotiations despite bipartisan support for many of the bill’s broader objectives.
With the administration now backing the compromise, Senate negotiators believe the legislation has its clearest path yet toward final consideration.
CLARITY Act would reshape U.S. crypto regulation
Beyond the Clarity act ethics compromise, the legislation represents one of the most comprehensive attempts yet to define how cryptocurrencies should be regulated in the United States.
At its core, the CLARITY Act seeks to resolve the years-long jurisdictional dispute between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
Under the current proposal, the CFTC would assume primary oversight of decentralized digital commodities, including bitcoin, once blockchain networks satisfy decentralization requirements. Meanwhile, the SEC would continue regulating digital assets that meet the legal definition of securities.
The legislation also addresses one of the industry’s biggest legal uncertainties by formally recognizing customer-owned crypto assets as customer property during exchange bankruptcies.
That provision emerged after the collapses of Celsius Network and Voyager Digital exposed gaps in existing bankruptcy law, leaving many customers uncertain about the status of their digital assets during insolvency proceedings.
The bill has already cleared a significant legislative milestone after the Senate Banking Committee approved its draft in May by a 15-9 bipartisan vote.
Coinbase Chief Policy Officer Faryar Shirzad praised the legislation when it advanced through committee, describing the framework as “a dramatic advance” for consumer protection and market integrity.
Supporters argue that regulatory clarity could strengthen investor confidence while encouraging greater innovation within the U.S. digital asset sector.
Senate faces tight timeline before August recess
Even with the Clarity act ethics dispute nearing resolution, lawmakers face a rapidly shrinking legislative calendar.
Senate Majority Leader John Thune has only a limited number of legislative days before senators depart for their summer recess during the first week of August.
Although Republicans hold 53 Senate seats, the legislation will still require support from at least seven Democrats to overcome the Senate’s 60-vote filibuster threshold.
That political reality means bipartisan cooperation remains essential despite the White House breakthrough.
Prediction markets reflected growing skepticism during the legislative deadlock, with bettors previously assigning only a 39% chance that the CLARITY Act would become law in 2026 as negotiations remained stalled.
Whether the latest compromise changes those expectations will likely depend on the final wording of the ethics package, which has not yet been publicly released.
Updated legislative text is expected within days.
Industry support continues to grow
Momentum behind the legislation has continued building outside Congress as industry groups and public officials intensify pressure for passage.
A coalition of law enforcement organizations recently endorsed the bill, arguing that clearer federal oversight would improve authorities’ ability to investigate cryptocurrency-related fraud and financial crimes.
Meanwhile, Senator Cynthia Lummis, one of Congress’ most prominent digital asset advocates, has repeatedly urged Senate leadership to schedule a floor vote before lawmakers leave Washington.
The White House’s decision to support the Clarity act ethics package signals that the administration also views the legislation as a priority before the August recess.
If the revised language satisfies enough Democratic lawmakers, the Senate could soon vote on legislation that many industry participants believe would establish the first comprehensive federal framework governing digital assets in the United States.
For now, attention shifts to the release of the updated bill text and the closely watched Senate debate that could determine whether years of negotiations finally produce a landmark crypto regulatory law.
