The CLARITY Act, the comprehensive cryptocurrency market structure bill making its way through the US Senate, has hit a roadblock over ethics provisions aimed at curbing President Trump’s business interests in the digital asset sector, according to multiple sources familiar with the negotiations.
The legislation, which would establish a clear regulatory framework for digital assets in the United States, has been widely viewed as the most significant crypto-related bill in Congress. However, Democratic senators have raised concerns about provisions that would allow the president and other executive branch officials to maintain financial interests in crypto businesses while shaping the industry’s regulatory environment.
Trump’s crypto ventures have generated substantial revenue, with recent disclosures showing his businesses earned over $1.4 billion from digital asset-related activities. Ethics watchdogs and Democratic lawmakers argue that without strong conflict of interest rules, the legislation could allow the president to personally benefit from the regulatory framework his administration helps create.
The standoff has delayed the bill’s floor vote, which was initially expected in late June. Senate Banking Committee members have been working to negotiate a compromise, with Republicans pushing back against what they describe as overly restrictive ethics provisions that could discourage qualified individuals from public service.
Senator Cynthia Lummis, a key advocate for the legislation, has expressed optimism that a compromise can be reached, noting that the bill enjoys broad bipartisan support on its core market structure provisions. The August recess deadline is adding pressure to resolve the ethics dispute, as failure to pass the bill before the break could push consideration into the fall election season.
The outcome of the CLARITY Act negotiations will have significant implications for the US crypto industry. The bill would clarify which digital assets are securities versus commodities, establish rules for stablecoin issuance, and provide a pathway for digital asset exchanges to register with federal regulators — reforms that industry participants say are essential for the market’s long-term growth.
This article was adapted from CryptoNews. Read the original here.
