President Trump just called Senate Democrats’ bluff, backing the strictest ethics language in U.S. history for the CLARITY Act and forcing the left to decide if they want a fair market for the American people or just another excuse to protect their Wall Street donors.
The crypto industry has been begging for regulatory clarity, and the CLARITY Act would finally deliver it by expanding CFTC oversight and setting clear rules of the road. But Democrats have spent months hiding behind "ethics" concerns to stall the bill, a convenient delay that protects the legacy financial system from decentralized competition. Now that Trump has agreed to their demanded ethics restrictions, the left has to fish or cut bait.
Trump met with Republican Sens. Bernie Moreno and Cynthia Lummis, along with White House crypto adviser Patrick Witt, and on Monday approved the proposed language. According to CryptoSlate, Moreno noted Trump accepted "the most aggressive ethics language" in U.S. history. The development shifts the burden squarely onto Senate Democrats, who demanded these limits in the first place.
Yet Democrats weren't even present at the July 16 White House meeting. A Democratic Senate aide told the Crypto In America newsletter that the Republican plan is "weaker than what Democrats will accept"—a bold conclusion considering lawmakers had not yet reviewed the newly approved text. Sen. Ruben Gallego previously complained the Republican language gave the president too much room to continue his "grift." Gallego and Sen. Angela Alsobrooks voted to advance the bill out of committee but threatened to pull support on the floor without an ethics agreement.
Facing a 60-vote filibuster threshold, Republicans need Democratic buy-in. But the goalposts keep moving. Benzinga reports that Sens. Catherine Cortez Masto and Mark Warner now insist on addressing law enforcement concerns, with Warner warning of "downside ramifications" if America gets it wrong. The National Sheriffs' Association even labeled crypto "the cartel currency of choice"—a convenient scare tactic to strangle American innovation in its crib.
Prediction markets are reacting to the White House concession, with odds of the bill becoming law in 2026 jumping from 32% to 43% on Monday. But the clock is ticking. There are only 14 working days left before the August recess, and negotiators need a cloture vote by the end of the week.
If Democrats tank a bill they demanded ethics provisions for, it won't be about ethics. It will be about protecting the established financial order from competition.
