Trump's Crypto Holdings Halt Clarity Act Progress

White House crypto adviser Patrick Witt defended President Donald Trump's handling of ethics rules tied to the Clarity Act after the legislation failed to advance in the Senate on September 15, with a vote of 49-50.

The ethics dispute was one of several issues surrounding the bill. Banking groups raised concerns about stablecoin provisions, while Witt argued that major banks opposed the rules because stablecoins could compete with traditional deposits and payment services.

Witt said Trump accepted significant restrictions on his crypto interests during negotiations, including provisions that could require him to divest certain holdings or place them in a blind trust. The administration was prepared to let states pursue certain federal ethics violations involving the president.