The White House has agreed to include stronger ethics provisions in the Senate version of the CLARITY Act, a move that could improve the bill’s chances of winning bipartisan support.
According to reports, White House officials met with Republican Senators Cynthia Lummis and Bernie Moreno to negotiate ethics language for the Digital Asset Market Clarity (CLARITY) Act of 2025.
While the details of the agreement have not been publicly disclosed, the new provisions are expected to address concerns about potential conflicts of interest involving government officials, including U.S. President Donald Trump’s cryptocurrency-related investments.
The CLARITY Act was approved by the House of Representatives in July 2025 during the Republican-led “Crypto Week.”
However, its progress in the Senate has slowed because of debates over ethics rules, stablecoins, tokenization, and legal protections for blockchain developers.
Media reports state that a White House official said that the administration was “committed to working with Congress to see the CLARITY Act advance and has agreed to the most comprehensive and wide-ranging ethics provision in history”, adding that it had “bent over backward to accommodate [Democrats’] concerns.”
Senate Vote Faces Political Challenges
Despite the reported agreement, the bill still faces significant hurdles in the Senate. The legislation will likely require at least 60 votes to advance, making bipartisan support essential.
Several Democratic lawmakers have insisted that stronger ethics safeguards must be included before they are willing to back the measure.
Senators Elizabeth Warren, Chris Murphy, Jeff Merkley, and Chris Van Hollen have argued that the legislation would remain ineffective without directly addressing concerns over Trump’s connections to the cryptocurrency industry.
Those concerns include his personal memecoin and his family’s involvement with World Liberty Financial.
Meanwhile, President Trump has continued urging lawmakers to approve the legislation. Last week, he encouraged the Senate to pass the CLARITY Act “in honor of” the late Senator Lindsey Graham, whom he described as “a big supporter” of the bill.
Although some lawmakers and industry leaders believe the ethics compromise could help move the legislation forward, the Senate has not yet scheduled a vote, and the latest version of the bill has not been publicly released.
Bitcoin Climbs as Investors Watch CLARITY Act Progress
The reported progress on the CLARITY Act also had an immediate impact on the cryptocurrency market.
Bitcoin prices climbed above $66,000 on Tuesday, reaching its highest level in seven weeks as investors reacted positively to news of the ethics agreement.
Many market participants believe that clearer regulations could encourage greater confidence in digital assets and support long-term growth in the cryptocurrency sector. The positive sentiment was also reinforced by expectations that the Senate could soon act on the legislation.
“The reason that prices are running upwards are entirely dedicated towards the potential approval of the Clarity Act” said Michaël van de Poppe, founder and chief investment officer of MN Fund and MN Capital, on a Tuesday X post.
He added, “Things are brighter and brighter, and as the charts technically look incredible from here, it looks likely that we’ll see the Clarity Act being approved shortly.”
While uncertainty remains over the bill’s outcome, the latest negotiations suggest that lawmakers are continuing efforts to bridge political differences and establish a clearer regulatory framework for the growing cryptocurrency industry.
