The Senate released a draft of the Digital Asset Market CLARITY Act on July 22 — a 616-page bill that includes a new government-ethics division targeting conflicts of interest, partly in response to President Donald J. Trump's $1.4 billion in crypto-related income during 2025. The bill aims to clarify the regulatory split between the SEC and CFTC, expand CFTC oversight of digital commodity spot markets, and create new federal registrations for digital asset platforms. But Senate Majority Leader John Thune said he does not expect the bill to pass before the summer recess, effectively setting an early August decision line.
The ethics division and the Trump factor
The draft carves out a six-section ethics division enforced by the Department of Justice. It sunsets on January 20, 2029 — the day after the next presidential term ends. The provisions must be implemented within one year of enactment. The language was influenced by U.S. Office of Government Ethics disclosures showing Trump generated at least $1.4 billion in crypto-related income during 2025. That figure, disclosed in OGE filings, gave lawmakers a concrete reason to push for stricter ethics rules covering digital asset holdings by public officials.
What the bill does for crypto markets
Beyond ethics, the CLARITY Act is a sweeping attempt to end years of regulatory turf wars. It draws a clear line between digital asset securities (SEC) and digital commodities (CFTC). The CFTC would get expanded oversight of digital commodity spot markets — a role it has long sought. And for the first time, digital asset platforms would need to register under a new federal framework, replacing the patchwork of state-level licenses that many exchanges currently juggle.
The timeline problem
Thune's comment that the bill won't pass before the summer recess puts serious pressure on the next few days. The Senate is expected to break in early August. That leaves a narrow window for floor time, especially with a 616-page bill that has 104 sections. If it doesn't move now, the whole thing could slip into the fall, when the election cycle will make crypto legislation even harder to prioritize. The ethics division's sunset date — tied to the 2029 inauguration — suggests the draft's authors were thinking long-term, but the immediate question is whether the Senate can act before the break.
