The fate of the CLARITY Act now rests with President Donald Trump. Former Fox Business journalist Eleanor Terrett reported that the White House received a bipartisan ethics counterproposal Th
The fate of the CLARITY Act now rests with President Donald Trump. Former Fox Business journalist Eleanor Terrett reported that the White House received a bipartisan ethics counterproposal Thursday morning. Whether Trump accepts it will determine if the Senate advances the bill before lawmakers leave town next week.
Senators Thom Tillis (R-NC) and Ruben Gallego (D-AZ) drafted the proposal together. It gives state attorneys general the power to sue the Department of Justice if it fails to enforce ethics laws against federal officials. Democrats have pushed for this provision throughout negotiations.
The mechanism mirrors one already in law under the Laken Riley Act, which allows state AGs to sue over certain federal immigration enforcement failures. A previous White House offer, agreed to alongside two Senate Republicans, fell short. Tillis, Gallego, and several other key Democrats rejected it. The new proposal is their answer.
NEW: President Trump Weighs Bipartisan Ethics Proposal as Clarity Hangs in the Balance
This weekend will be a high-stakes waiting game for Clarity Act supporters as the White House considers an ethics counteroffer involving state attorneys general.https://t.co/KBqx4zyRZF
— Eleanor Terrett (@EleanorTerrett) July 31, 2026
Ethics is the most visible obstacle, but it is not the only one. Democratic strategist told Crypto in America, Terrett’s news platform, that three separate issues must all be resolved together. “All three have to be locked in together if this bill is going to become a reality,” the strategist said.
The other two are the Blockchain Regulatory Certainty Act language and concerns within the agriculture section. Earlier, the White House and Treasury Department rejected a BRCA proposal backed by Senator Catherine Cortez Masto (D-NV) and two prosecutors’ groups. That proposal would have altered how prosecutors must prove criminal intent against software developers in money laundering cases.
Treasury Secretary Scott Bessent publicly backed the existing BRCA language, writing that it “does nothing other than codify longstanding Treasury Department policy.”
Resistance is building on the Republican side too. Senators Mike Rounds (R-SD), James Lankford (R-OK), and Jerry Moran (R-KS) have raised concerns that stablecoin yield provisions in the bill do not do enough to protect community banks from deposit flight.
State banking officials warned Senate leadership that stablecoin products offering interest-like rewards could weaken local lending capacity “by hundreds of billions.” Whether those concerns produce no votes or lead to further changes to the stablecoin yield provisions remains unclear.
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Industry leaders and lobbyists made calls to White House officials and influential allies, urging an ethics compromise before the Senate recess. JPMorgan has warned that further delays to the bill could allow traditional financial firms to capture blockchain and tokenization growth at the expense of public crypto networks.
Terrett described the weekend as a “high-stakes waiting game.” Trump’s decision on the ethics proposal sets the course for what comes next.
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