Trump Backs Crypto Ethics Rules as CLARITY Talks Continue

The White House has agreed to include new ethics restrictions in the Digital Asset Market Clarity (CLARITY) Act, a key concession aimed at securing bipartisan support as lawmakers work to advance the cryptocurrency market structure bill before Congress breaks for its August recess.

Summary:

The proposed ethics package would bar the president, members of Congress and other senior federal officials from issuing cryptocurrencies while in office.
Negotiators are still divided over who should enforce the ethics provisions.
Separate discussions on decentralized finance (DeFi) rules remain unresolved.
Democratic support is expected to depend on the final enforcement mechanism and ethics language.

While negotiators have moved closer on ethics provisions, disagreements over enforcement continue to complicate bipartisan talks.

According to reporting from journalist Eleanor Terrett, Democratic Senator Angela Alsobrooks opposes a proposal that would rely solely on the Department of Justice (DOJ) to enforce the legislation’s ethics requirements. She described the idea as an “unserious offer” and indicated she would not support the bill if no alternative enforcement mechanism is included.

Republican Senator Bernie Moreno, who has been working alongside Senator Cynthia Lummis during negotiations with the White House, said the current proposal would place enforcement authority with the DOJ rather than state attorneys general.

Alsobrooks nevertheless signaled that negotiations remain active, saying lawmakers would continue working toward an agreement that establishes stronger accountability measures.

Ethics Package Seeks to Address Conflict-of-Interest Concerns

The proposed ethics framework would introduce new restrictions on senior government officials involved in digital asset policymaking.

The current proposal includes:

A prohibition on the president issuing cryptocurrencies while in office.
Restrictions covering members of Congress and other senior federal officials.
Rules intended to prevent public officials from creating or promoting digital assets while exercising government authority.
Additional ethics language that negotiators are expected to finalize in the coming days.

The debate intensified following disclosures detailing cryptocurrency-related business interests associated with President Donald Trump and members of his family, prompting Democratic lawmakers to seek stronger safeguards against potential conflicts of interest before supporting broader market structure legislation.

DeFi Negotiations Continue Alongside Market Structure Talks

Ethics is not the only unresolved issue.

Lawmakers are also negotiating provisions governing decentralized finance (DeFi), where disagreements remain over anti-money laundering obligations and the treatment of non-custodial protocols.

Some banking organizations and law enforcement officials have argued that the current draft could leave gaps in existing AML requirements, while industry participants have warned against imposing regulations that they say are incompatible with decentralized blockchain infrastructure.

Those discussions are proceeding in parallel with the ethics negotiations, meaning multiple outstanding issues must still be resolved before the legislation can move forward.

Time Pressure Builds Ahead of August Recess

Congress faces a narrowing legislative window to advance the CLARITY Act before lawmakers leave Washington for the August recess.

The bill is expected to require 60 votes in the Senate, making bipartisan support essential. Although the White House’s willingness to accept ethics restrictions represents progress in negotiations, Democratic lawmakers have indicated that the final enforcement language will remain a decisive factor in determining whether enough votes can be secured for passage.

With revised legislative text expected within days, negotiations have entered a critical stage as lawmakers attempt to resolve the remaining differences before the Senate’s summer deadline.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.