White House agrees to ethics provisions in CLARITY Act targeting Trump

https://www.newyorker.com/tag/donald-trump

The White House has agreed to incorporate ethics provisions in the CLARITY Act targeting Donald Trump, with the U.S. Department of Justice now responsible for enforcement rather than state attorneys general. This agreement marks a significant step in resolving prior conflicts related to Trump’s extensive crypto holdings, which had previously stalled the bill. As the CLARITY Act, aimed at providing clear regulatory guidelines for the crypto market, progresses, it now awaits a full Senate vote before the August recess. This development suggests a potential path forward for the legislation, which has seen increased market optimism about its passage.

The CLARITY Act, which has already gained approval from the House and the Senate Banking Committee, is considered the most advanced legislative effort to establish a structured framework for digital assets in the U.S. The agreement on ethics language not only addresses White House concerns but also enhances the likelihood of the Act reaching a Senate floor vote. Markets have responded to this news with increased activity, reflecting optimism about the Act’s potential passage into law.

The agreement has impacted market pricing, with the probability of the CLARITY Act being signed into law in 2026 rising to 42%, up from 37% a day earlier. This shift suggests that market participants view the White House’s endorsement and the removal of the ethics hurdle as consistent with YES outcome support.

Key Takeaways

• The White House’s agreement on ethics language in the CLARITY Act appears to resolve a major legislative hurdle.
• Market pricing suggests increased confidence in the Act’s potential passage, with odds rising to 42% YES.
• The shift of enforcement authority to the DOJ may indicate improved prospects for the bill’s advancement.

What to Watch

The next key event is the Senate’s decision on when to schedule a floor vote for the CLARITY Act. Observers will be keen to see if Senate Majority Leader Chuck Schumer prioritizes this legislation before the August recess. Additionally, any public statements from President Trump or key legislative figures, such as Tim Scott or Cynthia Lummis, could provide further indications of the bill’s trajectory. These developments will likely influence market perceptions and odds surrounding the Act’s passage.

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