Trump Approves Ethics Package, Sending Clarity Act Closer to Senate Floor

Highlights:

• President Trump has agreed to ethics rules in the Clarity Act that would limit how federal officials profit from digital assets while in office.
• The Clarity Act would give the United States its first clear federal framework for regulating digital assets.
• The Senate must finish negotiations before the August recess to keep the bill moving forward.

President Donald Trump agreed to an ethics package tied to the crypto market structure bill after months of negotiations, an industry source familiar with the talks told The Block. The decision removes the biggest obstacle that had delayed the legislation before a Senate vote. It also moves the Senate closer to considering the bill before the August recess.

Trump Agrees to Ethics Provision, Clearing Key Hurdle for CLARITY Act

According to The Block, US President Donald Trump has agreed to an ethics provision in the CLARITY Act, removing the final major hurdle to advancing the crypto market structure bill toward a Senate vote. The… pic.twitter.com/hINSZbLFCf

— Wu Blockchain (@WuBlockchain) July 21, 2026

The White House, Senator Cynthia Lummis, Senator Bernie Moreno, and other negotiators spent months discussing the ethics language. The proposed provision would prevent presidents, vice presidents, members of Congress, and other federal officials from profiting from digital assets while serving in office. Punchbowl News reported that negotiators later circulated the revised legislative language to several Senate Republicans. However, lawmakers have not released the updated bill publicly.

News in PBN Texts: The White House, Sens. Lummis (R-Wyo.) and Moreno (R-Ohio) came to an agreement on crypto ethics language on covering President Donald Trump, according to three sources familiar.

The details of the agreement remain elusive, and Democrats have not seen text. pic.twitter.com/7nNv4sQF2d

— Brendan Pedersen (@BrendanPedersen) July 20, 2026

The breakthrough followed a July 16 Oval Office meeting between Trump, Lummis, Moreno, and White House crypto adviser Patrick Witt. Industry sources said the meeting ended without an agreement on the ethics package. One source said Trump questioned whether some proposed restrictions could affect his future digital asset interests.

Negotiators resumed discussions of the Clarity Act after the White House meeting and continued revising the ethics language. Trump’s crypto business interests also remained part of the debate. Lawmakers examined his memecoin projects and his family’s World Liberty Financial venture while negotiating the ethics safeguards. Industry sources later said Trump approved the revised ethics package late Monday, removing the final hurdle before a Senate vote.

Trump Agreement Adds New Clarity Act Safeguard

The Clarity Act would establish the first comprehensive federal framework for regulating digital assets in the United States. The legislation would also define how the Securities and Exchange Commission and the Commodity Futures Trading Commission divide regulatory authority.

Lawmakers have also revised the Senate draft during months of negotiations. The revised bill would also strengthen insider trading safeguards and close regulatory gaps exposed by the collapse of FTX.

Coinbase has also backed the revised proposal after opposing an earlier Senate draft of the Clarity Act this year. Coinbase Vice Chair Ryan VanGrack said the revised proposal has “more teeth” because it includes stronger consumer protections. VanGrack added that the bill would create the first comprehensive federal crypto framework while strengthening protections for digital asset users.

The Clarity Act represents a massive improvement over the status quo, providing clear and comprehensive rules of the road.

It's a win-win-win for American investors, innovators, and standards.

Thanks @squawkcnbc for having me, and shoutout to the guy in the background at the… pic.twitter.com/eM05LQ4SEi

— Ryan VanGrack (@RVanGrack) July 20, 2026

Senate Vote Faces August Deadline

The ethics agreement by Trump has shifted attention to the Senate, where lawmakers must complete negotiations of the Clarity Act before the August recess. That timeline leaves only a short period to finalize the revised legislative text and schedule a floor vote.

Blockchain Association Chief Executive Officer Summer Mersinger said the Senate could vote on the bill this week. However, Senate leaders have not announced an official voting date. Lawmakers are also expected to release the revised legislative text before bringing the measure to the Senate floor.

If senators approve the bill, it will return to the House of Representatives for another review. The House must approve the same version before sending the legislation to President Donald Trump. The president could then sign the bill into law and complete the federal legislative process.

The latest breakthrough has also improved expectations that lawmakers could advance the Clarity Act before the August recess. Prediction market Polymarket raised the probability of the bill becoming law this year to about 44% after reports that Trump accepted the ethics package.