CLARITY Act Deadlocked Over Trump Family Crypto Ethics

The Digital Asset Market Clarity Act (CLARITY Act) is on the verge of stalling due to a deadlock over executive-branch ethics rules. Despite strong bipartisan support for the market structure framework, Republicans expect the bill to fail its cloture vote on September 15.

The main issue revolves around an ethics provision that bars senior federal officials and their spouses from issuing or sponsoring digital assets while in office. Democrats have raised concerns about the sunset date of this provision, which coincides with the end of the current presidential term, effectively leaving President Trump untouched.

A failed cloture vote would reset the process, potentially pushing comprehensive market structure rules back by years. The calendar has already tightened, with House Republican leadership canceling planned voting weeks in September, making it difficult to reach a final vote before the midterms.