U.S. Clarity Act talks stall over ethics limits tied to Trump crypto holdings

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U.S. Clarity Act stalled over Trump crypto

Highlights

Negotiations over the Digital Asset Market Clarity Act stall as ethics rules regarding crypto holdings for officials remain unresolved, delaying Senate floor consideration.
Democrats increase demands for stricter ethics provisions after Trump's disclosure shows crypto assets boosted his wealth by about $1.4 billion, tying legislative support to reform language.
Political pressure intensifies with Senators Murphy, Van Hollen, and Merkley preparing opposition and Trump signaling the bill is a priority despite holding up other legislation.

Ethics dispute clouds final Clarity draft

As reported by CoinDesk, negotiations over the Digital Asset Market Clarity Act are still unresolved on whether ethics rules should bar senior government officials, and possibly their family members, from owning or profiting from crypto assets while overseeing the sector.

People familiar with the discussions say the provision remains one of the last major sections to be settled before the bill can move toward a Senate floor vote. A new draft is expected within the next few days, but it is not expected to contain final language on this issue and several other contested points.

Democratic concern has intensified after Trump's financial disclosure showed that crypto increased his wealth by about $1.4 billion. In a briefing organized through Senator Chris Murphy's office last week, ethics and anti-corruption advocates argued that the bill should prevent further profit from an industry being regulated by the administration, and that disclosure rules and ownership bans should extend to family members.

Earlier bipartisan talks had examined whether ethics requirements could take effect later and whether limits should apply only to officials themselves. But people briefed on the negotiations say those talks have recently hit a wall, even as Senate leaders keep pressing to advance the legislation this month.

Vote arithmetic and political pressure build

The bill needs significant Democratic support to reach the 60 votes required for Senate passage, and several Democrats now say that support depends on stronger ethics language. Senator Kirsten Gillibrand says Democrats have been pushing to make it illegal for presidents to issue or sponsor digital assets, arguing that ethics reforms must stop members of Congress, the president and their spouses from profiting from public office.

Senators Chris Murphy, Chris Van Hollen and Jeff Merkley are set to hold a press conference this week opposing the bill's current form, saying it fails to restrain what they describe as Trump's crypto schemes and the sector's growing influence in Washington. The dispute adds another obstacle as the Senate returns with only a few working weeks left before its major break and attention shifts toward the midterm elections.

Trump is still signaling that Clarity remains a priority. He says on Monday that Congress should pass the bill in honor of Senator Lindsey Graham, while White House crypto adviser Patrick Witt calls this a critical week for the legislation. That backing stands out because Trump has recently said he would not sign other bills until Congress advances stricter voter identification and proof-of-citizenship measures, suggesting crypto may be treated as an exception.

Our earlier coverage of the Clarity Act explained how the bill’s Senate path became more uncertain after Sen. Lindsey Graham’s death narrowed the Republican majority, raising the stakes for winning Democratic votes. We also noted that while the measure has strong backing from major crypto firms and the White House, Democrats have been pressing for tougher ethics safeguards for elected officials amid scrutiny of President Trump’s crypto-related wealth.

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