Trump Agrees to Ethics Provisions in Bipartisan Crypto Bill

President Donald Trump has agreed to new ethics restrictions within the Clarity Act, a long-awaited crypto market structure legislation, ahead of a preliminary Senate vote on Tuesday.

The revised bill aims to establish a new regulatory framework for cryptocurrencies and other digital assets. It includes provisions that permanently bar the president, vice president, members of Congress, federal judges, incoming elected officials, and their spouses from creating or sponsoring digital assets in exchange for payment. Additionally, officials with at least $15,000 in equity in companies primarily earning revenue from issuing crypto assets would be required to sell those holdings or place them in a blind trust.

The updated text also incorporates a key Democratic demand to allow state attorneys general to enforce ethics requirements on federal officials, an agreement brokered by Senators Thom Tillis and Ruben Gallego. Senator Cynthia Lummis, a Republican, confirmed Trump's approval of these new ethics provisions. White House crypto adviser Patrick Witt stated that the White House and Senate Republicans have been responsive to Democrats' policy objectives.

Despite these concessions, it remains unclear whether the Clarity Act has the 60 votes needed to advance in the Senate, requiring support from at least seven Democrats. Banking interests have warned they cannot support the bill unless it includes a fix to stop interest-like payments on stablecoins, fearing potential customer deposit flight from community banks.

The bill now includes a compromise on stablecoin yield, directing the Treasury secretary to restrict rewards if substantial deposit flight occurs. Prediction market odds for the bill's passage rose sharply after the news of Trump's agreement.