White House and Senate Republicans revise CLARITY Act as lobbying push intensifies
A White House-backed ethics compromise in the revised Senate crypto bill has not won public Democratic support, leaving Republicans short of the votes likely needed to move the measure before the August recess.
Multiple independent sources confirm the core claims. Eleanor Terrett's original X post (July 20, 2026) reports the White House agreed on an ethics package sent to Senate Republicans, corroborated by Yahoo Finance and Politico, which also confirm ethics language covering Trump was the main sticking point and Democrats had not seen it. Lummis's own X post confirms her renewed push on the customer-asset segregation provision, and the Cryptotimes report identifies this as Section 701 amending the Bankruptcy Code. All specific elements of the claim—the ethics deal, the Senate push, Lummis's Section 701 bankruptcy-protection framing citing Voyager—are corroborated across official and primary sources.
The Senate’s revised Digital Asset Market Clarity Act remains on an uncertain path after Republicans circulated a 616-page draft on July 22 that includes a White House-backed ethics provision but still lacks public support from Democrats needed to clear the chamber’s 60-vote threshold. The new ethics language would bar the president, vice president, members of Congress, senior executive branch officials and their spouses from issuing or sponsoring certain digital assets while in office. It would make the U.S. attorney general the primary enforcement authority, block state attorneys general from enforcing that section, and sunset in 2029 unless Congress extends it. Crypto platforms could also be required to avoid listing assets issued or sponsored in violation of the rule, while the attorney general could pursue civil enforcement against officials and other parties that knowingly violate it. That enforcement design has become the central sticking point for Democrats. Sen. Angela Alsobrooks called a Justice Department-only mechanism “an unserious offer” and said she could not support the bill in its current form, while a broader group including Alsobrooks, Cory Booker, Ruben Gallego and Mark Warner has argued that the CLARITY Act still falls short on ethics, consumer protection, illicit finance and market integrity. Their concerns have intensified amid scrutiny of President Donald Trump’s crypto-related business interests, including income disclosed from World Liberty Financial and memecoin-related ventures. Senate Majority Leader John Thune said he wants to bring the bill to the floor before the August recess, though he acknowledged further talks and revisions may still be needed. With Republicans holding 53 seats, the measure would likely still require support from at least seven Democrats if all senators vote. The legislation would establish a federal framework for digital assets, divide oversight between the SEC and CFTC, and include provisions affecting decentralized finance developers and blockchain infrastructure participants, but its prospects remain uncertain while negotiations continue.
- decentralized finance: Blockchain-based financial services that aim to operate without traditional intermediaries such as banks or brokers.
- illicit finance: Financial activity tied to crimes such as money laundering, sanctions evasion or the movement of illegal funds.
- market integrity: The principle that markets should function fairly and transparently, without manipulation, abuse or conflicts that undermine trust.