Trump Clears Hurdle on CLARITY Act Ethics Language Amid Ongoing Democrat Support Concerns

The CLARITY Act has taken a step forward after President Trump approved ethics language for the bill. However, Democratic support remains unresolved as Senate Democrats have yet to review the revised legislative text.

The agreement was reached after negotiations between the White House and Republican lawmakers over conflict-of-interest rules for senior government officials. The CLARITY Act aims to create a federal framework for crypto regulation by dividing oversight responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

The legislation would place most digital asset oversight under the CFTC, while securities-like digital assets would remain under the SEC. It also includes customer protections during bankruptcy and safe-harbor provisions for decentralized finance developers.

Democratic Senator Ruben Gallego has described the Republican draft as 'very weak', while Republican Senator Bernie Moreno called it the strongest ethics language included in congressional legislation.