The CLARITY Act, a bipartisan bill aimed at setting clear rules for digital assets, has stalled in Congress this week. The holdup? An unresolved ethics provision that would require disclosure of crypto income tied to former President Donald Trump. The provision has divided lawmakers, leaving the broader legislation in limbo.
What the CLARITY Act does
The bill was designed to give the crypto industry a regulatory framework — something many exchanges and investors have been demanding for years. It would have defined which tokens are securities, set consumer protections, and established a federal sandbox for new projects. But the ethics clause, inserted late in negotiations, has become a poison pill.
The ethics fight
The disputed provision would force any public official — including a former president — to report crypto income above a certain threshold. That includes profits from NFTs, token sales, or mining. Trump's financial disclosures have shown he holds crypto assets, but the exact amounts are unclear. Some Republicans argue the provision is a targeted attack, while Democrats insist it's a standard transparency measure. Neither side has budged.
Where things stand
House leadership pulled the bill from the floor calendar late Monday. Aides say no new vote is scheduled. The timing isn't great — the legislative calendar is tight, and the midterm elections are approaching. If the bill doesn't move in the next few weeks, it could die entirely. For now, the crypto industry is left waiting. The bill's future now hinges on the ethics committee's next move.
