Legislation that would establish a comprehensive regulatory framework for digital assets in the United States is approaching what could be its final hurdle, with disagreements over ethics provisions tied to President Donald Trump sprawling crypto business interests threatening to derail the bill before the August recess.
Optimism is building among supporters that a market structure bill could pass, though the timing remains uncertain as lawmakers grapple with how to address conflicts of interest involving the president. The bill, often referred to as the CLARITY Act, would clarify which digital assets fall under Securities and Exchange Commission jurisdiction versus Commodity Futures Trading Commission oversight.
Senator Cynthia Lummis has indicated that the bill text could be released in the coming days, with a focus on combating illicit finance, consumer protections, and keeping crypto markets onshore in the United States. President Trump has urged the Senate to pass the legislation, framing it as essential for maintaining American competitiveness against China and in artificial intelligence development.
The ethics standoff centers on concerns that the bill lacks sufficient language restricting Trump from profiting off his substantial crypto holdings and business ventures. Senator Elizabeth Warren has pushed to add provisions barring Trump, his family, and senior officials from benefiting from digital asset policies enacted under the legislation. Trump financial disclosures have shown his crypto ventures generated more than $1.4 billion last year.
The White House crypto adviser Patrick Witt is set to leave his position later this month for mandatory Army National Guard training, adding urgency to the timeline. Witt had described the coming week as critical for the bill prospects. Democratic opposition to the CLARITY Act has been mounting, with critics arguing the bill does not adequately address Trump potential conflicts.
President Trump is expected to meet with senators to resolve the ethics deadlock, which represents the last major obstacle before a possible Senate floor vote. Observers say the outcome of these negotiations will determine whether the crypto industry secures the regulatory clarity it has been seeking for years.
This article was adapted from The Block. Read the original here.
