President Donald Trump has agreed to support the majority of a bipartisan ethics proposal tied to the revised CLARITY Act, seeking to set new standards for digital asset regulation in the United States. The move comes ahead of a key Senate procedural vote on September 15, where supporters must secure 60 votes for the bill to proceed.
CLARITY Act aims for bipartisan reforms
Senate Republicans released a revised version of the CLARITY Act after reaching a compromise with Trump. The act, developed by lawmakers including Senator Thom Tillis and Senator Ruben Gallego, focuses on regulating potential conflicts of interest among federal officials involved in the digital asset market. The legislation proposes comprehensive rules to address ethical challenges and promote transparency.
The original version of the bill prohibited federally elected officials, their spouses, and federal judges from directly issuing digital assets. Lawmakers led by Tillis and Gallego advocated for even stricter measures and enhanced enforcement power at the state level, targeting potential loopholes and boosting oversight.
Trump accepted approximately 80% of the broadened ethics proposal, according to a senior GOP aide. This compromise was intended to improve the bill’s prospects among Democratic senators whose votes are considered essential for passage.
Mini dictionary: CLARITY Act, a proposed US federal law designed to establish a comprehensive regulatory framework for the digital asset market and to increase ethical standards among public officials involved in crypto-related activities.
Stronger enforcement and divestment requirements
A central feature of the revised bill is giving state attorneys general explicit enforcement powers, enabling them to pursue violations by crypto exchanges that list digital assets prohibited under the legislation. Until now, only the US Department of Justice had primary enforcement authority, but the new provisions seek state and federal cooperation.
The updates also require specific federal officials with significant financial stakes in crypto-issuing entities to either divest these holdings or place them into blind trusts, addressing concerns about conflicts of interest in digital asset policymaking.
| Provision | Original Bill | Revised Bill |
|---|---|---|
| Divestment Requirement | Not specified | Mandatory divestment or use of blind trust for officials |
| Enforcement Authority | Federal only (Justice Department) | State attorneys general and federal authority |
| Eligible Officials | Elected officials, spouses, judges barred from issuing digital assets | Divestment rules broadened |
Senators Cynthia Lummis, Tim Scott, and John Boozman emphasized on X that the revised bill grants state attorneys general a “meaningful enforcement role.” Democratic senators have insisted on strengthened conflict-of-interest protections as a condition for their support, repeatedly calling for state-level enforcement authority alongside federal agencies.
White House officials have voiced concerns that state attorneys general could use the new powers for political advantage. However, after over a year of negotiations, White House crypto adviser Patrick Witt stated that the administration has addressed Democrats’ core policy issues.
Upcoming Senate vote and legislative outlook
The Senate is set to hold a procedural vote on September 15, with a 60-vote threshold required to advance the bill. If the measure falls short, the path forward for the CLARITY Act may narrow significantly, particularly in the lead-up to the November midterm elections in 2026.
The ethics provisions have remained a central sticking point in previous efforts to push the legislation forward. The CLARITY Act’s core aim is to create a unified federal approach to digital asset regulation, an issue that has drawn bipartisan interest and debate.
President Trump’s decision to accept most of the Tillis-Gallego ethics proposal resolves a major political barrier, paving the way for state and federal authorities to jointly oversee crypto market conduct and potential conflicts of interest.
If the Senate advances the bill, lawmakers will continue debating final language and enforcement provisions in the coming weeks. Otherwise, further crypto regulation efforts may be delayed by the demands of the 2026 election cycle.
