Ethics Deadlock Draws White House Into the Room The White House is stepping directly into the fight over the Digital Asset Market Clarity Act, with President Donald Trump expected to sit down
The White House is stepping directly into the fight over the Digital Asset Market Clarity Act, with President Donald Trump expected to sit down with U.S. senators Thursday afternoon to work out the most difficult remaining piece of the bill regulating U.S. crypto markets. According to @CoinDesk, one source places chief of staff Susie Wiles among those attending.
The major unfinished section of the legislation is its restriction on senior government officials' personal crypto business. Industry insiders have argued that resolving the ethics section would clear the path for Clarity through its remaining Senate hurdles, but Trump's willingness to accept restrictions that might affect him has remained an uncertainty.
Negotiations among senators from both parties were said to have hit a wall over the conflict-of-interests provision, with Democrats demanding the president, vice president, and members of Congress be restricted in their personal crypto ties.White House officials have repeatedly said they would not tolerate a bill that targets the president. The White House's stated position is that it can accept rules applied broadly across the executive branch, but not language seen as singling out one officeholder.
Senate Majority Leader John Thune has said he will press forward with Clarity later this month, whether the final language is set or not.The Senate is set to depart Washington for its lengthy summer recess after the first week of August, leaving only a few weeks to work out a final Clarity Act effort before lawmakers scatter and begin focusing more intently on November's midterm elections.
The bill still needs at least seven Democratic votes to clear the Senate's 60-vote threshold, with key supporters making their backing conditional on unresolved issues.Even the two Democrats who voted to advance the Banking Committee's version warned they may not approve the final bill if it does not address outstanding concerns, including the ethics provision. The White House had also not signed off on the merged text or engaged in the most recent negotiations before this week's planned meeting.
Galaxy Research has estimated passage odds at roughly 50-50 for 2026, treating the August recess deadline as the last realistic legislative gate before the calendar works against enactment. Polymarket traders priced the bill's 2026 passage odds near 48%, down from 74% a month ago. Thursday's meeting is the clearest sign yet that the White House recognises a deal needs to move now or not at all.
Sources:CoinDesk: High-level White House meeting said to be planned to hash out Clarity Act ethics sectionCoinDesk: Newest version of crypto Clarity Act may drop as soon as next week, sources sayThe Block: What's next for the Clarity Act as Congress returns to Washington
