Trump’s Crypto Ethics Stance Leaves Clarity Act Negotiations in Limbo
President Donald Trump’s position on ethics rules has stalled progress on the Clarity Act, a major cryptocurrency regulation bill.
Quick Summary
A private meeting between President Trump, White House officials, and Republican senators failed to reach an agreement on ethics provisions. These rules aim to limit how top U.S. officials profit from digital assets while in office.
What Happened in the Meeting
On July 16, Trump met with Republican Senators Bernie Moreno and Cynthia Lummis, along with White House crypto adviser Patrick Witt. The main topic was ethics language for the Clarity Act.
According to industry sources, Trump did not approve the proposed ethics provisions. No final agreement was reached during the meeting.
Why Ethics Provisions Matter
Negotiators have been working for months on rules that would restrict presidents, vice presidents, members of Congress, and other officials from profiting from cryptocurrencies during their time in office.
The debate intensified due to Trump’s involvement in memecoins and his family’s company, World Liberty Financial (WLF). Recent financial disclosures showed hundreds of millions of dollars linked to WLF.
Sources say Trump has concerns that strict ethics rules could harm him or his businesses in the future.
Current Status of the Clarity Act
The Clarity Act aims to create the first comprehensive federal framework for the crypto industry. However, bill text release and Senate voting are now on hold until an ethics deal is reached.
Senate Democrats have also expressed strong concerns, stating they will not support the bill without strong ethics safeguards.
Trump’s Recent Statement
In a Truth Social post, Trump urged the Senate to pass the Clarity Act in honor of the late Senator Lindsey Graham. He warned against letting China gain control over crypto and AI.
What’s Next?
Bill text is expected in the coming days, but progress depends on a quick ethics compromise. The Senate has until early August to vote. If passed, the bill will return to the House before reaching President Trump’s desk.
