The CLARITY Act faces a crucial Senate vote Tuesday after President Donald Trump agreed to tougher ethics limits for federal officials with crypto interests, White House adviser Patrick Witt said Monday.
Republicans accepted as much as 95% of Democrats requests during negotiations, Witt said at the Solana Policy Institute summit. The agreement comes as lawmakers seek a broader framework for cryptocurrency regulation.
Trump accepts wider ethics limits
Under the latest deal, Trump could be required to place some investments in blind trusts, while states could gain greater authority to enforce federal ethics rules, Witt said.
Related: 17 Attorneys General Warn Clarity Act Could Weaken State Crypto Enforcement
The changes aim to address concerns about potential conflicts involving government officials with crypto holdings. However, Democratic staffers have questioned whether the provisions could give Trump administration officials too much control over ethics enforcement.
The Senate needs 60 votes to advance the bill, leaving Republicans with little room for defections.
CLARITY Act faces more hurdles
Banking groups have warned that stablecoin rewards could encourage customers to move funds from traditional bank deposits. Witt called the concern “entirely hypothetical and speculative.”
Crypto advocates remain concerned about restrictions affecting decentralized finance projects. Even if the Senate reaches the 60-vote threshold, lawmakers would still need to consider amendments and hold additional votes before the legislation could advance.