CoinDesk
President Donald Trump's disclosed $1.4 billion in crypto-linked wealth has become the central obstacle in the Digital Asset Market Clarity Act negotiations, with Senate Democrats demanding that the bill's ethics provision bar presidents, members of Congress, and their spouses from owning, sponsoring, or profiting from digital assets. A new draft is expected within days, but the ethics section remains unresolved as the Senate enters its final working weeks before the summer recess.
Senator Kirsten Gillibrand, one of the Democrats at the table, said Trump's largest 2025 income stream, $636 million, came from issuing the $TRUMP memecoin, and argued that no president should be allowed to issue or back a token. Senator Chris Murphy is bringing ethics and anti-corruption advocates to a Tuesday press conference alongside Senators Chris Van Hollen and Jeff Merkley, where they will frame the bill as failing to "rein in President Donald Trump's corrupt crypto schemes." Bipartisan talks had considered delaying the ethics implementation, but people briefed on the talks say that approach has hit a wall.
Why it matters
Clarity needs 60 Senate votes to advance, meaning Democrats effectively hold a veto on any final package. Gillibrand has made clear the bill cannot pass without addressing the conflict-of-interest question, and Senate Majority Leader John Thune has signaled he wants a vote this month regardless of how rough the text looks. Trump's own position has flipped inside a week: he refused to sign a bipartisan housing affordability bill until Congress advanced his voting-ID priority, then endorsed Clarity on Monday after the death of Senator Lindsey Graham, calling for passage "in his honor."
Market impact
The crypto industry has spent a year lobbying for Clarity as the structural follow-up to last year's stablecoin bill, and White House crypto advisor Patrick Witt flagged this week as the "critical week" on the one-year anniversary of that earlier legislation. A weakened ethics section would likely clear the bill but draw blistering Democratic floor opposition; a strict provision risks Trump pulling his endorsement and the bill collapsing.
Frequently asked questions
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What is the Digital Asset Market Clarity Act?
It is the long-awaited US crypto market structure bill that would set rules for digital asset trading, oversight, and market participants, serving as the structural follow-up to last year's stablecoin legislation.
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Why are Democrats demanding an ethics provision in the bill?
Democrats want Clarity to bar presidents, members of Congress, and their spouses from owning, sponsoring, or profiting from digital assets, citing Trump's $1.4B in disclosed crypto-linked wealth and $636M from the $TRUMP memecoin in 2025.
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Can the Clarity Act pass without the ethics provision?
Senate passage requires 60 votes, which means Democrats effectively hold a veto. Senator Gillibrand has said the bill cannot pass until the conflict-of-interest question is addressed.
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What is Trump's current position on the Clarity Act?
Trump endorsed the bill on Monday, asking for passage "in his honor" of the late Senator Lindsey Graham. That stance reverses his recent refusal to sign other legislation until Congress advanced his voting-ID priority.
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When is the next Clarity Act draft expected?
A new draft is expected within days, though people briefed on talks say the ethics section is not expected to be fully resolved, and the Senate has only a few working weeks before its summer recess.
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