Key Highlights
- Senator Cynthia Lummis backed Trump’s crypto ethics agreement and urged Congress to pass the CLARITY Act.
- Democrats are yet to review the ethics proposal before deciding whether to support the bill.
- Lawmakers have less than three weeks to resolve the remaining issues before Congress begins its campaign break.
Senator Cynthia Lummis has praised President Donald Trump’s newly approved crypto ethics agreement, calling it a major step forward for the Digital Asset Market CLARITY (CLARITY) Act.
“History will remember this as the moment a president chose a higher standard of ethics than the law required of him,” Lummis wrote in a post on X. “This agreement bans ALL federal officials — including the President — from issuing or sponsoring a digital asset for profit, with real enforcement and real penalties. Thank you, @POTUS! Let’s get the Clarity Act passed NOW.”
She also urged Congress to pass the bill without further delay, saying the agreement raises the standard for public officials involved in digital assets. Her comments came after Senate Republicans released an updated draft of the CLARITY Act.
Trump approves new ethics language
Trump approved the ethics language on July 21, and the revised draft released today includes ethics provisions, the Blockchain Regulatory Certainty Act (BRCA), stablecoin provisions, law enforcement measures, and other digital asset-related policies. According to the report, the ethics package was negotiated between the White House and Republican senators, including Lummis and Moreno.
Under the revised legislation, the president, vice president, members of Congress, federal judges, and other covered public officials, along with their spouses, would be banned from issuing or sponsoring digital assets for compensation while in office. The restriction would remain in place until January 20, 2029.
The proposal also requires covered officials to either sell their cryptocurrency holdings and investments in crypto-related companies or place those assets in a blind trust they do not control. It also introduces a requirement to disclose crypto sales worth more than $1,000.
Why the ethics debate matters
The ethics provisions have been one of the biggest obstacles to advancing the CLARITY Act. For months, Democrats argued that stronger ethics safeguards were necessary before they would consider supporting the legislation.
The issue gained additional attention after Trump’s recent financial disclosures showed he had earned more than $1 billion from crypto-related businesses. Since then, ethics rules have become a central point in negotiations over the bill.
Democrats yet to review the proposal
Although the updated proposal has been released, it has not yet won Democratic support. Senator Elizabeth Warren has previously described strong ethics protections as non-negotiable. Senator Kirsten Gillibrand has also said the bill cannot move without an acceptable ethics provision.
Senators Ruben Gallego and Angela Alsobrooks have taken a similar position, saying they need to review the final language before deciding how they will vote.
Enforcement and next steps
The revised legislation gives the Department of Justice (DOJ) civil enforcement authority over ethics violations. It would also allow the Justice Department to sue crypto exchanges that knowingly list digital assets issued in violation of the new rules. In addition, the Government Accountability Office would be required to study whether further ethics protections are needed.
With Congress expected to begin its campaign break in less than three weeks, lawmakers have only a short time left to settle the remaining disagreements. While the ethics package addresses one of the major sticking points for the CLARITY Act, the bill’s progress in the Senate will likely depend on whether it can secure sufficient bipartisan support.
Also Read: Senate GOP Unveils Updated CLARITY Act Draft With Ethics Rules, BRCA
