- Ethics negotiations have moved the Clarity Act closer to a Senate vote, although enforcement powers remain unresolved.
- The proposed legislation would establish the first comprehensive US regulatory framework for digital assets and split oversight between two federal regulators.
- Lawmakers are working against the Senate’s summer recess deadline, with bipartisan support still needed for the bill to advance.
Efforts to pass landmark US cryptocurrency legislation have advanced after President Donald Trump agreed to an ethics provision designed to address concerns over government officials’ involvement with digital assets. The agreement follows months of negotiations between the White House and lawmakers.
The proposed measure would prohibit federal officials from issuing or offering digital assets, with the administration describing it as the broadest ethics provision of its kind. Democrats have argued such safeguards are necessary because of concerns about President Trump’s and his family’s cryptocurrency ventures.
Related: Senate CLARITY Bill Faces Pushback Over Trump’s Crypto Ties
Debate Shifts to Enforcement
Despite the breakthrough, disagreements remain over how the restrictions should be enforced. Democratic negotiators want state attorneys general to oversee compliance, while the White House and Republican supporters of the legislation believe enforcement should be handled by the US attorney general through the Department of Justice.
The ethics language has become the key hurdle for the Digital Asset Market Clarity Act, which would introduce the first comprehensive federal framework for regulating the digital asset industry and allocate responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Legislative text is expected to be released in the coming days before the Senate considers the bill ahead of its summer recess. Should senators approve the legislation, it would return to the House for another vote before being sent to President Trump for signing.
Senate Majority Leader John Thune said discussions are continuing and that the legislation’s progress will ultimately depend on whether enough Democrats support moving the bill forward.
Related: Bitcoin Slides as Risk-Off Sentiment Returns Amid Iran Strikes, Tech Selloff
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