White House Official Urges Democrats to Back CLARITY Act’s Ethics Deal

A White House official reportedly urged Senate Democrats to accept President Donald Trump’s proposed ethics compromise as negotiations over the Digital Asset Market Clarity (CLARITY) Act enter their final stage.

According to a report, the official, who spoke on condition of anonymity, said Trump has agreed to what the administration described as the “most comprehensive and wide-ranging ethics provision in history” in an effort to resolve one of the last major disputes holding up the crypto market structure bill.

Trump’s ethics deal faces a test

The administration’s appeal comes as negotiations over the CLARITY Act remain focused on ethics provisions governing senior government officials’ involvement in the digital asset industry.

While the White House says Trump approved the proposal after discussions with Republican Senators Cynthia Lummis and Bernie Moreno, the administration has not disclosed the contents of the agreement. Updated legislative text has also not been released publicly.

Republican lawmakers have begun circulating draft language among colleagues, raising expectations that the legislation could soon move toward a Senate vote if negotiators resolve the remaining issues.

Waiting on the draft

Even with that progress, one major problem remains. The Democratic senators whose votes could help pass the bill have not received the proposal. Senators Kirsten Gillibrand, Ruben Gallego and Angela Alsobrooks have all said strong ethics rules must be included before they can support the legislation. Senator Elizabeth Warren has also argued that strict ethics protections are necessary.

Because Democrats have not seen the new language, they have not been able to decide whether it meets their demands. While the White House believes it has addressed their concerns, Democratic lawmakers say they cannot support an agreement they have not had the chance to review.

Why negotiations have stalled

The ethics debate has become the biggest obstacle to the CLARITY Act. Democrats want rules that would stop the president, vice president, senior government officials, members of Congress and their close family members from making money from the digital asset industry while also helping regulate it. 

Their concerns grew after Trump’s recent financial disclosures showed he earned more than $1 billion from crypto-related businesses last year. 

Enforcement dispute adds another hurdle

Negotiations have also expanded beyond the ethics rules themselves to include how those provisions would be enforced. According to Senator Bernie Moreno, the current White House proposal would assign enforcement authority to the Department of Justice instead of state attorneys general.

That approach drew immediate criticism from Senator Angela Alsobrooks, who said she could not support the legislation if the Justice Department were the sole enforcement authority. According to journalist Eleanor Terrett, Alsobrooks described the proposal as “an unserious offer,” arguing that exclusive DOJ enforcement would not provide sufficient confidence that the ethics rules would be applied effectively.

Time is running out for the CLARITY Act

Negotiators are expected to continue working on the ethics language in the coming days. Industry participants are still waiting for the updated CLARITY Act text, while senators continue discussions over the final details.

With less than three weeks left before Congress begins its campaign break, lawmakers have limited time to settle the remaining disagreements and bring the crypto bill to the Senate floor. 

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