Clarity Act Hits Final Stretch as Ethics Provisions Threaten July Vote

The Clarity Act, aimed at establishing a federal rulebook for digital assets, is facing its final stretch as the Senate takes its annual July 4 recess. The bill's biggest threat could be ethics provisions, with President Donald Trump's own crypto holdings now central to the fight for 60 Senate votes.

Industry leaders are split on whether the bill bundles too much in or finally gives builders the certainty they have waited years for. Senator Cynthia Lummis recently noted that government officials have reached the point where Clarity will be put out over July 4 for final reviews, with a promise from lawmakers to advance the bill once it's reviewed.

However, some industry experts believe the draft may still face obstacles that prevent it from reaching 60 votes in the Senate. Reid Cuming, CEO and co-founder of Ground, said regarding ethics provisions: 'I don’t have a political position here, but the practical reality is this is the main obstacle to 60 Senate votes.'

The ethics problem centers around President Trump's own crypto holdings, including his memecoin, his sons' involvement in World Liberty Financial, and a Bitcoin mining venture, which have reportedly generated over $2 billion in new wealth since he returned to office.