President Donald Trump has agreed to an ethics provision in the Clarity Act, the crypto market structure bill that has been stalled for months. The concession removes a major hurdle and clears the way for the legislation to advance toward a Senate vote.
The ethics provision
The clause would restrict the president, vice president, members of Congress, and other federal officials from profiting from digital assets while in office. It's a direct response to concerns about conflicts of interest as lawmakers and the executive branch increasingly hold or trade crypto.
Trump's agreement came after weeks of private negotiations between the White House and Senate sponsors. The exact language hasn't been released publicly, but sources familiar with the talks say the provision applies broadly to any digital asset — not just Bitcoin or Ethereum — and covers both direct holdings and indirect exposure through funds or trusts.
The Clarity Act is the most ambitious attempt yet to create a federal framework for crypto markets. It would define which digital assets are securities, set rules for exchanges, and give the Commodity Futures Trading Commission a bigger role. Without Trump's sign-off on the ethics language, the bill was unlikely to get floor time in the Senate.
Now that hurdle is gone. Senate Majority Leader Chuck Schumer has indicated he'll schedule a vote once the final text is filed, which could happen as soon as next week.
What happens next
The bill still needs 60 votes to overcome a filibuster. Supporters are confident they have the bipartisan backing, but a handful of senators remain undecided. The House passed a similar version in June, so if the Senate clears it, the bill would go to conference committee to reconcile differences.
Trump's decision to accept the ethics provision wasn't a given. He has publicly traded crypto assets and has spoken favorably about the industry. But with the 2026 midterms approaching, the White House wanted a legislative win on an issue that polls well with younger voters.
The Senate is expected to take up the Clarity Act in the first week of August.
