President Donald Trump has agreed to proposed ethics restrictions tied to the Digital Asset Market Clarity Act, removing a major obstacle that had stalled negotiations on the landmark crypto bill. Trump met on July 16 with Republican Sens. Bernie Moreno and Cynthia Lummis, along with White House crypto adviser Patrick Witt, to discuss the ethics provisions. He approved the language on Monday, according to reports.
What the ethics language covers
Sen. Moreno told CNBC that Trump accepted what he described as 'the most aggressive ethics language' in US history. The exact terms haven't been released, but the restrictions are aimed at preventing conflicts of interest involving the president, vice president, and members of Congress. The move addresses a key demand from Democrats who had insisted on stronger ethics guardrails before supporting the bill.
The CLARITY Act would create a federal framework for digital-asset markets. It expands CFTC oversight of digital commodities while preserving SEC authority over securities. Crypto intermediaries would face registration and customer-protection requirements. The House passed an earlier version in July 2025 by a 294-134 vote. The Senate Banking Committee advanced its version 15-9 on May 14, with Democratic Sens. Ruben Gallego and Angela Alsobrooks joining Republicans. But Republicans need 60 votes to overcome a filibuster, meaning they'll need more Democratic support. Sen. Alsobrooks said after the committee vote that lawmakers still needed an ethics agreement covering the president, vice president, and members of Congress, and identified financial-crime provisions as unfinished business.
Trump's crypto ties and the ethics debate
Trump's annual financial disclosure for 2025 showed more than $1.4 billion in income connected to family cryptocurrency ventures, including World Liberty Financial and businesses tied to the TRUMP memecoin. Companies linked to Trump received almost $800 million from World Liberty Financial, including proceeds from token sales and sale of interests. Sen. Elizabeth Warren argued that approving market-structure legislation without stronger ethics protections could allow Trump to continue benefiting financially from an industry affected by his administration's decisions. An amendment by Sen. Chris Van Hollen seeking restrictions on crypto business ties involving senior government officials failed 11-13 in the Senate Banking Committee.
With the ethics hurdle cleared, attention shifts to the financial-crime provisions that Sen. Alsobrooks flagged as unfinished. The bill still needs to reach 60 votes on the Senate floor. Trump had repeatedly called for Congress to pass crypto market-structure legislation before the latest negotiations. The clock is ticking — lawmakers will need to resolve the remaining Democratic concerns and schedule a floor vote, likely before the August recess.
