A new Senate draft of the crypto market structure bill finally includes an ethics provision limiting how the president and other officials profit from digital assets, but Democrats say it isn’t enough.
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Posted July 23, 2026 at 6:24 am EST.
Senate negotiators on Wednesday circulated a new working draft of the Digital Asset Market Clarity Act that, for the first time, includes the government ethics provision that has been the single biggest obstacle to the crypto market structure bill. The draft would prohibit the president, vice president, members of Congress, federal judges, and their spouses from issuing or sponsoring digital assets for compensation while in office.
Enforcement would fall to the Department of Justice, which could impose fines of up to $250,000 a day on violators. Officials who already hold digital assets could comply by selling them or placing them in a blind trust. Senator Cynthia Lummis, the Wyoming Republican leading the push, released the draft after President Trump reportedly signed off on the ethics language.
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Trump’s crypto dealings have become the central obstacle to a bill the industry has sought for years. Trump reported roughly $1.4 billion in crypto-related income during his first year back in office, and Democrats have spent months trying to bar senior officials and their families from profiting off the industry, citing ventures like his stake in World Liberty Financial.
Seven Senate Democrats, including Ruben Gallego and Cory Booker, said in a joint statement that the most recent Clarity Act text “falls short” on ethics, consumer protection, and illicit finance. Senator Angela Alsobrooks has also reportedly called DOJ enforcement of the ethics rule “an unserious offer.”
The Clarity Act needs 60 votes, meaning at least seven Democrats to pass.
The timing is tight. The Senate leaves for its summer recess in a little over two weeks, and the first week of August is widely seen as the last practical chance to move the bill this year before attention shifts to the November midterms. Even if it passes the Senate, it would need to return to the House and then moved to Trump’s desk before becoming law.
Polymarket bettors most recently placed the odds of Clarity becoming law this year at 33%.
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AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
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