President Donald Trump will host senators at the White House on Thursday to review progress on the CLARITY Act, the sweeping crypto regulatory bill that cleared the House last year but is stuck in the Senate. The bill needs 60 votes on the floor, and with the August recess looming, Majority Leader John Thune wants a vote before August 7. The biggest obstacle: an ethics provision that would limit officials from holding crypto business interests — a line Democrats say they need before supplying the missing votes.
The vote math
The CLARITY Act passed the House 294-134 in July 2025 and cleared the Senate Banking Committee 15-9 in May. But only two Democrats — Ruben Gallego and Angela Alsobrooks — backed it in committee. Sens. Elizabeth Warren and Chris Van Hollen oppose it, arguing it weakens consumer protections. That leaves Thune short of the 60-vote threshold. Polymarket traders give the bill only a 38% chance of passing in 2026.
The ethics hang-up
The ethics provision is the main sticking point. Democrats want limits on officials holding crypto business interests before they supply the missing votes. Trump's own annual disclosure listed $635 million in meme coin royalties and roughly $515 million from World Liberty Financial token sales — a fact that doesn't make the negotiations any easier. Sen. Cynthia Lummis said a revised draft could circulate soon, with the ethics language possibly bracketed for later. Sen. Thom Tillis said negotiators are close and hopes for an agreement by the end of the week.
Industry and law enforcement angles
Ripple executives warned that rejecting the bill would leave crypto consumers exposed to bad actors, citing the FTX collapse as an example of regulatory gaps. Meanwhile, 78 banking groups pushed to rewrite stablecoin yield rules, while law enforcement opposition eased on Section 604, which deals with developer liability. The shifting positions suggest the bill's final shape is still in play.
Thursday's meeting at the White House is the latest attempt to break the logjam. Tillis said he hopes for an agreement by the end of the week. If the Senate can't get to 60 votes before the August recess ends on August 7, the bill's chances could slip further. Lummis indicated a revised draft could appear soon, but whether the ethics language gets bracketed or resolved remains the open question.
