Donald Trump has repeatedly called on Senators to pass the CLARITY Act and has reportedly agreed to an ethics provision which would see him sell all of his crypto and digital asset-related holdings.
Donald Trump has agreed to an ethics provision within the US CLARITY Act to proceed the bill’s advancement as its 7 August, 2026 deadline looms.
According to an unnamed White House official, the US President has agreed to “the most comprehensive and wide-ranging ethics provision in history”. It has yet to be revealed to Democrat Senators on what language was included in the provision.
This comes after months of Democrat Senators continuously raising concerns over Trump’s $1.4bn worth of crypto, digital asset and stablecoin ties, which includes USD1 – the stablecoin, issued by World Liberty Financial, which is founded by his sons, Donald Trump Jr. and Eric Trump.
The ethics provision is believed to restrict all senior Federal and government officials from holding and/or acquiring crypto and digital assets.
“If Senate Democrats block this historic legislation after the administration has bent over backward to accommodate their concerns, stakeholders should make no mistake: It is the Democrats who are blocking this legislation because they were never serious about a legislative outcome,” said the anonymous White House official cited by CoinDesk.
Political lines are drawn
The framing of the White House officials comments suggests that if the CLARITY Act does not pass a full Senate vote by 7 August, Republicans will point the blame at Democrats.
Left-wing Senators, including Elizabeth Warren, recently wrote a letter arguing that the current CLARITY Act proposals would allow Trump and his family to profit from the crypto industry.
Warren said in the letter: “Leader Thune has indicated he aims to hold a floor vote on crypto market structure legislation this month, despite significant flaws in the current draft that have raised concerns about risks to national security, financial stability, consumer protection, and ethics.
“Those concerns have become even more pressing in light of the President’s 2025 financial disclosure, which underscores the severity of his crypto-related conflicts of interest.”
After disclosing his finances and crypto holdings several weeks ago, Trump said: “I don’t get involved in my personal (finances), we have funds that run my money.”
Democrats have yet to be officially cleared on the ethics provisions the President has agreed to and while it is expected they will receive it this week, it has been delayed for the last week.
Will the CLARITY Act pass on 7 August?
After months of pushback and missed deadlines, the Senate had earmarked 7 August for Senators to vote on whether the CLARITY Act can progress for a President to sign off.
Trump has championed the CLARITY Act as a bill that would reaffirm his stance to make the US the ‘crypto capital of the world’, yet it is his crypto ties that have added yet another boundary for the bill to progress.
Senators, once the ethics provision is available to all, now have less than three weeks to agree on the language used and for it to be filed within the bill.
If Republican and Democrat senators are unable to come to a compromise on the ethics provision, or fail to pass the vote, this could set back the CLARITY Act to potentially next year.
