CLARITY Act ‘clears key hurdle’ – White House agrees to crypto ethics deal

President Donald Trump has reportedly backed an ethics deal, effectively clearing the final obstacle to the crypto market structure bill, the CLARITY Act. 

According to reports, the ethics language arrangement was reached by the White House and Republican Senators Cynthia Lummis and Bernie Moreno.

Although the text was expected to be made public soon, the details of the deal remained unknown. Besides, Democrats had yet to see the text, at least as of writing.

The ethics provision came back to light after Trump made over $1.4B from his crypto ventures. Democrats, led by Sen. Elizabeth Warren, insisted that there was no need for the CLARITY Act if it does not rein in Trump’s ‘corruption’ in the industry. 

For the bill to pass the Senate floor vote, Republicans will need about 7-10 Democrats to reach the 60-vote threshold. It remains to be seen whether Democrats will back the reported ethics provision. 

According to crypto platform SoSoValue, however, this could unlock Democratic support.

The CLARITY Act has cleared a key hurdle, with Trump agreeing to include crypto ethics provisions in the bill, removing the last major political obstacle to securing Democratic support and advancing it to a Senate vote.

Global crypto race heats up as CLARITY Act delays

Separately, White House crypto advisor Patrick Witt said that he will remain as crypto advisor to see the bill reach the finish line. Witt was to go for mandatory military training, but it has been deferred, allowing him to continue pushing for the bill’s progress. 

That said, Witt pressed Congress to pass the CLARITY Act as Russia moves to finalize its crypto framework. 

Several jurisdictions now have a legal framework for the sector, including Europe, Singapore, the U.A.E, and Hong Kong. In fact, even the U.K. is on track to finalize crypto rules by 2027. 

However, the U.S. push for the same has been hindered by the stablecoin yield fight, developer protection, and ethics provisions. The first two issues have seen some progress in the past few months, but ethics remained the key last hurdle. 

While the latest update on the ethics deal was positive, the market was still less optimistic about the bill’s passage by the end of 2026. 

According to prediction site Kalshi, the chance of the bill’s passage before 2027 was 38%. However, the odds surged to 61% for Q1 2027, underscoring that the market expected the bill to pass next year rather than in 2026. 

Final Summary

• White House agreed to an ethics provision arrangement with Republicans, but it didn’t have Democrats’ input yet. 
• The market was more optimistic that the CLARITY Act could be passed in 2027, not 2026.