Trump Relents on Crypto Ethics, Clears Path for Clarity Act
US President Donald Trump has finally agreed to ethics rules for crypto legislation, clearing the way for passage of the CLARITY Act. The bill, which aims to clarify regulatory oversight for digital assets, has been stalled due to disagreements over ethics provisions.
The revised text includes enforceable restrictions on federal officials and their spouses' crypto holdings, requiring divestment or placement in a blind trust. State attorneys general will be able to enforce these rules, a concession the White House had previously resisted.
Senator Cynthia Lummis, who has led crypto legislation in the Senate since co-authoring the Responsible Financial Innovation Act in 2022, published the text alongside Republican senators Tim Scott and John Boozman. Lummis stated that Trump 'voluntarily agreed to new ethics provisions.'
The CLARITY Act would divide supervision of digital assets between the US Commodity Futures Trading Commission and the Securities and Exchange Commission, replacing a fragmented system in which classification has largely been settled through enforcement actions and litigation.