Senators Propose Stricter Measures on Trump’s Clarity Act Regarding Crypto

Policy Senators Propose Stricter Measures on Trump’s Clarity Act Regarding Crypto

Sources indicate that a bipartisan Senate pair revising the ethics section of the bill, originally approved by Trump, has devised a strategy aimed at gaining enough support.

By Jesse Hamilton|Edited by Nikhilesh DeUpdated Jul 29, 2026, 11:13 p.m. Published Jul 29, 2026, 11:12 p.m. 6 min read

The two U.S. senators collaborating on a compromise to address the ethics concerns within the crypto-focused Clarity Act have reportedly concluded their approach, although specific details remain undisclosed.

• Senators Thom Tillis, a Republican, and Ruben Gallego, a Democrat, took on this challenge after it became clear that the section approved by the White House concerning conflicts of interest for senior officials was insufficient for most Democrats.
• If successful, the revamped Clarity Act faces a tight schedule to navigate the Senate’s complex voting procedures before the end of the year.

The future of the crypto market structure bill appears to hinge on the legislative language crafted by Senators Tillis and Gallego. Sources familiar with the negotiations suggest they have completed their initial revisions, focusing on restricting government officials from direct connections to cryptocurrency initiatives.

Details of their latest proposal have not been made public, but it will require White House approval and substantial Democratic support to advance the Digital Asset Market Clarity Act to a Senate vote.

The ethics provisions specifically target President Donald Trump's business ties to the crypto industry, aiming to prohibit senior government personnel from direct involvement. Trump recently expressed willingness to accept a limited version of these ethics constraints, surprising some in the crypto sector, while the White House referred to it as an unprecedented ethical standard affecting the president. However, Democratic critics argue that the proposal allows Trump to comply with minimal effort and avoids scrutiny from a Justice Department led by his allies.

Republican Tillis and Democrat Gallego have sought to bridge the divide, and insiders report that they have found some common ground, though specifics have not been released. Crypto lobbyists are closely monitoring the developments, as time is running out before the Senate's August recess, and they believe that resolving the conflicts-of-interest section could facilitate progress on other aspects of the bill.

Representatives for the senators and the White House did not respond promptly to inquiries about the status of the ethics discussions.

Challenges Ahead

Despite facing numerous challenges in Congress, the Clarity Act continues to advance, akin to the relentless character in the John Wick films. However, it approaches a critical juncture as the Senate nears its final week of activity before the summer break.

Currently, two timelines are at play. The Senate's calendar is notoriously difficult to navigate, requiring considerable floor time for any contentious bill. With just seven days left before senators depart for recess, the legislation's prospects diminish with each passing hour, particularly as they begin to focus on the impending midterm elections.

Additionally, there is a pressing deadline for negotiations, as the two parties and the White House strive to secure the necessary 60 votes. Their final push must win over numerous hesitant Democrats and a few cautious Republicans.

Crypto lobbyists are fervently hoping that negotiators—particularly Tillis and Gallego—can establish a feasible compromise, circulate the revised bill, and facilitate its movement through the Senate voting process. Senate Majority Leader John Thune remains skeptical, suggesting that the bill likely lacks the time needed to complete the Senate's intricate process before the break.

However, if the process can begin and clear an initial 60-vote hurdle before the week concludes, it could set the stage for a successful outcome. For this to happen, industry stakeholders would prefer to see Thune initiate the first motion for "cloture"—the procedure that prepares a bill for voting—by week's end.

Understanding Cloture

The timing for cloture is complex and somewhat adjustable, as it involves multiple votes over several days, some requiring the Senate's exclusive attention without other business. This culminates in a 30-hour debate period followed by a final vote. Complicating matters, the Senate is currently engaged with other cloture situations, including sanctions against Russia and federal nominations awaiting confirmation.

The Clarity Act is one of several priorities for the Senate before the break. Any unfinished business will be pushed to a brief window in September, when the Senate must address all outstanding issues before members face voters in November, potentially including a federal budget to keep the government operational.

The crypto bill stands a better chance of capitalizing on this time if it has gained momentum through cloture by next week. Nevertheless, Thune acknowledges that the bill has yet to find its bipartisan consensus.

"We will probably have a vote on the Clarity Act," Thune stated in a recent Fox News interview, while cautioning that this is contingent upon shifting Democratic sentiments. "We'll see if the Democrats provide the votes to proceed."

If Thune is compelled to push for a vote on a version that Democrats have indicated they will oppose, it may be a strategic move to force them to publicly record their opposition ahead of the November elections, potentially damaging ongoing negotiations.

"After nearly 11 months of conceding to nearly every request, I truly don't understand what else my Democratic colleagues require before we take action," remarked Republican negotiator Senator Cynthia Lummis in a recent post on social media platform X.

Remaining Issues

What additional elements are still under discussion? The Clarity Act's language has undergone extensive revisions and negotiations over the past couple of years, but the parties at the table have narrowed their focus to a few key issues, including the "ethics" provision, illicit finance protections with significant implications for decentralized finance (DeFi), and the ongoing debate over stablecoin rewards programs.

The specifics of the latest compromise regarding the ethics section have yet to be revealed. Some Democrats have recently held press events and hearings to express their opposition to the Clarity Act, although the stricter restrictions they demand are unlikely to yield any legislative compromises.

While the conflicts-of-interest provisions have garnered the most attention, DeFi advocates maintain that the bill should protect developers from being classified as regulated money transmitters, which remains a contentious point. Some law enforcement groups have softened their earlier opposition on this issue, but Democratic Senator Catherine Cortez Masto continues to push for stronger illicit finance protections.

Patrick Witt, the White House's crypto advisor, has expressed his frustration, posting on social media that his team has "made our position abundantly clear to Senator Cortez Masto for weeks."

Moreover, the American Bankers Association has resumed lobbying on the topic of stablecoin yields, which was a significant issue that initially hindered the Clarity Act's progress earlier this year. They insist that the final bill must ensure that prohibitions on stablecoin interest and yield cannot be circumvented through rewards or similar arrangements that resemble interest payments, as stated in a letter to Senate leadership.

Witt countered in a post on X that the negotiation has already addressed that concern, concluding with frustration, "Make it make sense."

While Thune's prediction suggests that the Clarity Act may not pass the Senate by next week, Witt argued that there remains time to achieve this before the deadline of August 7 (which is crucial for the Clarity Act's viability). However, many in the industry are quietly adjusting their expectations to September.

"Clear rules are almost here," asserted Coinbase CEO Brian Armstrong in a post on X. "We're at the one-yard line."

If the Clarity Act does not pass in September, it is unlikely that any progress will occur during the lame-duck session following elections. Should Democrats gain control of the U.S. House of Representatives—and potentially the Senate, though that is more challenging—they are unlikely to support the Clarity work largely driven by Republicans, necessitating a complete overhaul of the bill.

Read More: U.S. Senate puts off crypto Clarity Act for now as it focuses limited bandwidth elsewhere

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