Trump to meet senators to negotiate CLARITY Act crypto ethics rules

Trump to meet senators to negotiate CLARITY Act crypto ethics rules

President Donald Trump is scheduled to meet with U.S. Senators on Thursday afternoon at the White House to negotiate the ethics provisions of the Digital Asset Market Clarity Act. The meeting comes as the legislation faces a narrow window for passage before the Senate adjourns for its summer recess after the first week of August.

The CLARITY Act, a comprehensive crypto market structure bill, aims to establish a clear regulatory framework for digital assets in the United States. While the Senate Banking Committee advanced the bill in May 2026 with a 15-9 vote, partisan disagreements over ethics rules have stalled its progress toward a floor vote.

The primary point of contention is an ethics provision that would cap personal cryptocurrency business interests for senior officials, including the president, vice president, and members of Congress. This specific clause directly targets the president's involvement in the sector. Trump revealed earlier this month that his crypto ventures generated over $1 billion in income in 2025, a figure that has fueled opposition from Democrats.

Democratic lawmakers have made these limits a condition of their support. On Tuesday, senators Jeff Merkley (D-OR), Chris Van Hollen (D-MD), and Chris Murphy (D-CT) held a press conference calling for opposition to the bill unless it severs what they described as Trump's corrupt ties to the industry. Earlier, during the committee markup, an amendment from Senator Van Hollen to bar these officials from crypto business ties failed 11-13.

The outcome of Thursday's meeting may depend on whether the president will accept legislation that restricts his own businesses. While he has repeatedly urged Congress to pass the CLARITY Act, he has not publicly stated which conflict-of-interest terms he would sign into law.

Some negotiators appear to be excluded from the process. Senator Ruben Gallego (D-AZ), who has led the Democratic Party's ethics negotiations for several months, was reportedly not invited to events tied to the bill. Gallego and Senator Angela Alsobrooks (D-MD) both voted to advance the bill in May but stated they would not support final passage without an ethics clause.

Republican negotiators view the president as a primary driver of the legislation. Senator Bernie Moreno (R-OH) stated that senators will brief the president on the bill and its path to success, noting that the president has been very engaged and has driven innovation that will pay dividends.

The timeline for the legislation remains tight. Senator Cynthia Lummis (R-WY), a chief architect of the bill, indicated a draft could circulate as soon as Wednesday, though senators are weighing whether to include the ethics language or bracket it for later. This uncertainty means the final draft, originally expected this week, may be delayed.

Senate Majority Leader John Thune expressed hope to bring the bill to the floor before the work period ends August 7. Thune stated the chamber will push the bill into the legislative review process regardless of whether the text is finalized this month, confirming that the Senate will eventually vote on the measure.

Market participants and analysts are monitoring the situation closely, as passage could bolster confidence in the U.S. Regulatory environment and affect Bitcoin's market dynamics. Galaxy Research has placed the odds of the bill's passage at 50-50 as the deadline approaches and lawmakers prepare to shift their focus to the November midterm elections.