The Digital Asset Market Clarity Act (CLARITY Act) is facing a roadblock in its passage through the US Senate due to a contentious ethics provision. The issue revolves around the $2.3 billion worth of crypto holdings held by former President Donald Trump and his family, which would be affected by the bill's conflict-of-interest rules.
The CLARITY Act aims to provide clarity on digital assets and their regulation in the US. It passed the House with a wide bipartisan margin in July 2025 but has been stuck in the Senate due to disagreements over ethics provisions. The Senate placed the measure on its legislative calendar on June 1, 2026, making it eligible for full floor consideration.
Senate Republicans and Democrats are engaged in three-party negotiations with Patrick Witt, executive director of the White House Crypto Council, to resolve the issue. However, a deal seems elusive as the two sides remain far apart. The mechanism functions such that clearing the Senate requires 60 votes to overcome a filibuster, meaning crypto lobbyists need at least seven Democratic votes beyond the chamber's 53-seat Republican caucus.
Senators Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD), who voted for the bill in the Senate Banking Committee, have conditioned their floor support on enforceable ethics guardrails. Without both of them, the vote math does not work.