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The White House has agreed to include ethics restrictions in the Senate’s Digital Asset Market Clarity Act, addressing one of the disputes delaying a floor vote on the crypto market-structure bill.
The language was negotiated with Republican Senators Cynthia Lummis and Bernie Moreno and circulated to selected Republican lawmakers on July 20. The reported language covers President Donald Trump, but the text has not been publicly released or reviewed by Senate Democrats.
Federal Officials Would be Barred From Issuing Digital Assets
The reported provision would prohibit federal officials from offering or issuing digital assets while in office. The Department of Justice would be responsible for enforcing the restriction, according to an industry source familiar with the negotiations.
A White House official described the agreement as the most extensive federal ethics provision proposed for digital assets and urged Democrats to support the wider legislation. The administration did not publish its own summary of the restrictions.
Unreleased Text Leaves Family and Ownership Rules Unclear
It remains unclear whether the language covers officials’ spouses or children, existing crypto holdings, passive income, token promotions or interests held through private companies.
Those details cannot be confirmed until lawmakers release the revised bill. That leaves the agreement as a reported compromise rather than final public legislative text.
DOJ Enforcement Could Remain a Senate Obstacle
Democrats have sought ethics rules restricting elected officials from profiting from crypto ventures while helping shape the industry’s regulatory framework. Placing enforcement solely with the Justice Department could remain contentious because the department is part of the executive branch.
The reported compromise does not give state attorneys general separate enforcement authority. The Senate Banking Committee advanced its version of the CLARITY Act 15-9 on May 14 with support from two Democrats.
Passage on the Senate floor will require enough bipartisan support to overcome a likely 60-vote procedural threshold.
CLARITY Would Divide Oversight Between SEC and CFTC
CLARITY would divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It would also create registration and customer-protection requirements for crypto intermediaries.
Negotiations are still addressing anti-money laundering rules, customer identification requirements, and enforcement responsibilities. The ethics agreement could remove one political obstacle, but it does not settle those remaining provisions.
Revised Bill Text and Senate Vote Remain Pending
Republican negotiators want a Senate vote before lawmakers leave for the August recess. No final text or confirmed floor date had been published as of July 22.
The next step is release of the revised bill, followed by a decision from Democratic senators on whether the ethics language is sufficient to support passage.
