President Donald Trump has agreed to accept tougher ethics provisions and expanded state enforcement authority in a bid to rescue the Clarity Act, the sweeping crypto market-structure bill that has struggled to gain traction in the Senate, according to a report from the Associated Press.
A Bid to Break the Logjam
The concessions center on expanded conflict-of-interest rules and stronger state-level enforcement powers, changes designed to win over hesitant senators who had blocked the legislation from moving forward. The Clarity Act aims to establish a comprehensive regulatory framework for digital assets, drawing a clearer line between which tokens fall under the jurisdiction of the Securities and Exchange Commission and which belong to the Commodity Futures Trading Commission.
For months, the bill has faced resistance from lawmakers concerned about oversight gaps and potential conflicts of interest, particularly given the president's own growing ties to the crypto industry. By signaling flexibility on ethics rules, the White House appears to be trying to defuse those objections and assemble the votes needed for passage.
The White House is trading tighter ethics rules for the Senate votes it needs to move crypto's biggest legislative priority.
What the Changes Mean
The agreement to grant states more enforcement muscle could prove significant, giving local regulators a larger role in policing digital-asset markets rather than concentrating authority solely at the federal level. Supporters of the bill have argued that regulatory clarity is essential for the industry to mature and for the United States to remain competitive in the global crypto race.
Key elements reportedly on the table include:
- Expanded conflict-of-interest provisions aimed at addressing ethics concerns
- Enhanced state-level enforcement powers over digital-asset activity
- A framework dividing regulatory oversight between the SEC and CFTC
Whether the concessions will be enough to secure passage remains uncertain, as the legislation still faces a difficult path through a divided Senate. The industry has closely watched the Clarity Act as a potential turning point for how digital assets are regulated in the U.S., and any movement on the bill is likely to reverberate across crypto markets in the weeks ahead.