On Monday, the White House finalized an ethics agreement for the Digital Asset Market Clarity Act and shared the revised language with key Senate Republicans, marking a key step toward a Senate floor vote on the first full US crypto legislation.
The agreement, reached with Senators Cynthia Lummis of Wyoming and Bernie Moreno of Ohio, explicitly includes provisions covering former President Trump. Enforcement responsibility will rest with the Justice Department instead of state attorneys general, addressing Republican concerns but potentially complicating Democratic support.
This shift in enforcement jurisdiction follows the collapse of a previous deal last month. That earlier version would have allowed state attorneys general to sue the DOJ for failing to enforce ethics rules, a measure Democrats insisted on given the DOJ's direct accountability to the president. Routing enforcement back to the DOJ eases Republican resistance but leaves a key Democratic voting bloc unconvinced.
The bill needs 60 votes to overcome a Senate filibuster, meaning it must secure bipartisan backing. So far, only Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland have supported it out of the Senate Banking Committee, both demanding more solid conflict-of-interest provisions before committing to floor votes.
The core contention revolves around Trump's substantial crypto earnings. His recent financial disclosures revealed over $1.4 billion in crypto-related income last year, including memecoin royalties and dividends from World Liberty Financial. This personal stake intensifies scrutiny over ethics rules within the bill.
Senate Majority Leader John Thune aims for a Clarity Act vote before the August recess, after which legislative momentum is expected to slow due to the midterm elections. Even if passed by the Senate, the bill still faces hurdles in the House and requires presidential approval.
This dynamic highlights the delicate balancing act between regulatory clarity and political interests, with significant implications for the future of crypto regulation in the US.
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