Lawmakers have shared the latest draft aimed at finalizing a Senate vote, but discussions continue regarding a key ethics component of the government.
By Jesse Hamilton|Edited by Nikhilesh DeUpdated Jul 22, 2026, 4:27 p.m. Published Jul 22, 2026, 4:15 p.m. 4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on President Donald Trump would face restrictions regarding his crypto business interests under the new Clarity Act draft. (Jesse Hamilton/CoinDesk)SummaryShow- The draft, which is not yet finalized, includes an ethics provision that would expire in 2029 and mandates regulators to enforce it within a year of its passage.
- Key elements concerning conflicts of interest, particularly regarding President Donald Trump's extensive crypto engagements, remain contentious, and Democratic lawmakers may still have reservations.
- The draft has been shared with insiders in the cryptocurrency sector, and the Senate has limited time to finalize it before the summer break.
A near-final version of the Digital Asset Market Clarity Act is currently under review as the U.S. Senate prepares for a critical push to establish a long-awaited regulatory framework for the crypto market. This draft includes a controversial provision that seeks to prevent conflicts of interest for the President, but it is intended to be temporary.
The working draft surfaced shortly after negotiations with President Donald Trump reached a consensus on addressing the remaining significant challenge: the clause aimed at restricting the president and high-ranking officials from having direct ties to cryptocurrency. This provision is set to expire in 2029 and designates the Department of Justice to oversee any related ethics complaints, as per descriptions of the draft that were circulated on Wednesday.
Despite the crypto sector being granted insights into the extensive bill, Democratic lawmakers have yet to review the draft, the text of which was posted at Punchbowl News. For the bill to pass, at least 10 Democratic votes will be required due to the Senate's 60-vote threshold for most legislation, and many Democrats have expressed dissatisfaction with the ethics section.
The comprehensive bill text reflects efforts from two Senate committees—Banking and Agriculture—and incorporates numerous new provisions aimed at safeguarding users and investors in digital assets. Senate Majority Leader John Thune has indicated plans to advance the legislation in the coming days before the summer recess, with the new draft containing several pages of additional material likely to appeal to Democrats.
“Today’s draft is a meaningful step toward the Senate vote on the Clarity Act we’ve been advocating for,” stated Cody Carbone, CEO of the Digital Chamber. “We’re encouraged, and we’re committed to ensuring the bill reaches the president’s desk.”
One aspect that may provide considerable relief to the decentralized finance (DeFi) sector is that the provision known as the Blockchain Regulatory Certainty Act remains unchanged. This means that developers who do not control users' assets will not be classified under the regulatory framework as "money transmitters," which would impose significant compliance obligations. The draft also introduces new language regarding federal preemption, provisional registration processes, and commodity pool operators—all of which are currently under intense examination by experts.
Recently, several Senate Democrats held a press conference expressing their concerns about the Clarity Act and highlighted the growing influence of the crypto industry in Washington.
The Democratic Party has been divided over the months-long negotiations surrounding the Clarity Act, with some senators consistently opposing the bill under Elizabeth Warren's leadership while others have engaged in talks with Republicans. A shared stance among Democrats has been the necessity of including a ban on government officials' involvement in digital assets, which draws attention to Trump's financial dealings.
After Trump's financial disclosures revealed he made over $1 billion from his crypto investments last year, Democrats have used these figures to support their claims of corruption and conflicts of interest within the White House.
Last week, Republican senators met with Trump, and by Monday, they had reached an understanding. A White House official informed CoinDesk on Monday that Trump agreed to what has been described as the most extensive ethics provision in history.
The proposed legislation would require regulators to implement the new ethics rules within one year. However, it remains uncertain when these limitations would take effect for Trump and how he would address his numerous crypto business interests, including his stake in World Liberty Financial.
Supporters of the bill, such as Senator Cynthia Lummis, have defended both Trump and the legislation itself. Lummis, a Republican from Wyoming and head of the digital assets subcommittee in the Senate Banking Committee, remarked, "It's time to land this plane" in a recent interview on Fox Business. "This is about assisting law enforcement in combating illicit finance, enacting consumer protections, and maintaining these markets within the U.S."
With 16 days remaining (including weekends) until the Senate departs for its summer recess, there is a limited window for the Clarity Act to progress from the Senate under normal procedures. Although there is some floor time available in September, lawmakers will increasingly shift their focus to the upcoming November midterm elections. Thus, the first week of August is widely regarded as the final opportunity for the Clarity Act to advance through the Senate.
Read More: Trump's crypto riches loom over Clarity Act talks to ban conflicts for U.S. officials
UPDATE (July 22, 2026, 16:27 UTC): Includes comment from Digital Chamber.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk Research2 hours agoMarkets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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