Trump Backed CLARITY Act Ethics Rule Puts DOJ In Charge

What the Ethics Language Contains

President Donald Trump has signed off on ethics provisions for the Digital Asset Market CLARITY Act, according to sources familiar with the matter. The provision would bar all federal officials from offering or issuing digital assets, with the Department of Justice tasked with enforcing the measure. The broad restrictions would apply to the president himself, the vice president, and members of Congress.

While the White House says Trump approved the proposal following discussions with Republican Senators Cynthia Lummis and Bernie Moreno, the administration has not disclosed the full contents of the agreement, and updated legislative text has not been released publicly. A White House official described it as "the most comprehensive and wide-ranging ethics provision in history."

Democratic Opposition Complicates the Path Forward

The enforcement structure is already drawing resistance from Democrats whose votes the bill needs to clear the Senate. Republicans hold 53 Senate seats, meaning at least seven Democrats must cross over to reach the 60-vote threshold required to advance the legislation past a filibuster.

Sen. Angela Alsobrooks is one of only two Democrats who previously voted to advance the bill from the Senate Banking Committee. She told Crypto In America host Eleanor Terrett on July 21 that the idea was "not a serious proposal" and that she would not support the bill if DOJ-only enforcement were the only mechanism.

Democrats are suggesting the DOJ is sufficiently controlled by the president that the CLARITY Act's ethics rules may not be used against him if federal authorities are the sole enforcers. Acting Attorney General Todd Blanche, Trump's former personal defense lawyer, would be the one investigating any violations.

An earlier proposal that would have allowed state attorneys general to sue the Justice Department over failure to enforce ethics rules was withdrawn by Republicans and the White House in a closed-door session in June, collapsing a near-deal. The Senate has fewer than three weeks to resolve the bill and get it through a floor vote before lawmakers leave for their August recess.

Prediction market Polymarket's contract on the CLARITY Act being signed into law in 2026 traded near 47% on Tuesday, up from a record low of 31% earlier this month but still short of a coin flip.

Sources:
CoinDesk: Crypto Clarity Act still at mercy of ethics section as Democrats balk at Trump deal
The Hill: White House agrees to ethics provision in crypto bill
Crypto Times: CLARITY Act Talks Hit Fresh Roadblock Over Ethics Enforcement