Trump Backs Ethics Language in CLARITY Act, Clearing Key Barrier to Crypto Market-Structure Bill

July 21 — Crypto journalist Eleanor Terrett reported, citing sources, that President Donald Trump has agreed to add ethics provisions to the CLARITY Act (Digital Asset Market Structure Act). The White House has reached alignment on an ethics framework, removing what sources describe as the last major roadblock to the months-long push for federal crypto regulation. The bill text could be released as soon as Monday, though a slight delay remains possible. Democrats had not reviewed the specific language at the time of the report. Following the news, Polymarket odds that the CLARITY Act will be signed into law by 2026 rebounded to 43%. Galaxy Research has previously said the bill's chances of passage within 2026 were roughly even. Talks had failed to produce a deal during a July 16 meeting that included Republican senators Bernie Moreno and Cynthia Lummis and White House crypto adviser Patrick Witt. The agreement was ultimately finalized by Trump on Monday evening. The ethics provision is designed to bar federal officials—including the president, vice president and members of Congress—from profiting from digital assets while in office. The dispute has centered on the Trump family's meme tokens and World Liberty Financial. Disclosures released last month showed Trump's crypto income at roughly $1.4 billion, a figure that previously stalled negotiations. Path to a vote before the August recess If enacted, the CLARITY Act would create the first comprehensive federal framework for the digital-asset industry, including clearer lines of authority between the SEC and the CFTC. The House passed the bill in 2025 by a bipartisan 294–134 vote. The Senate Banking Committee advanced it on May 14 this year, 15–9. It remains stuck in end-stage negotiations ahead of a full Senate vote. Text is expected in the coming days, after which the measure would head to the Senate floor. The timetable is tight: the Senate breaks on Aug. 7 and returns Sept. 14. If the Senate passes its version, the bill would go back to the House to reconcile language before being sent to the president for signature. In mid-July, the Senate whip count briefly tightened. After returning from a trip to Ukraine, South Carolina Republican Sen. Lindsey Graham died suddenly on the night of July 11 at age 71 from an aortic dissection, reducing the GOP count from 53 seats to 52. The Associated Press reported that two days later Gov. Henry McMaster appointed Graham's sister, Darline Graham Nordone, who was sworn in on July 14, immediately filling the seat. Sen. Mitch McConnell has been absent from votes since being hospitalized June 14. As of July 12, he said he was not ready to return; no further updates have been provided. Under Senate Rule 22 cloture requirements, if McConnell remains out, passage would require at least eight additional Democratic votes on top of the number of Republicans actually present. Trump has urged the Senate on Truth Social to move quickly, framing passage as a tribute to Graham and arguing it is needed to prevent China from gaining an edge in digital finance and artificial intelligence. White House staffing shifts underscore the push. Crypto adviser Patrick Witt had been expected to step away this week for mandatory Georgia Army National Guard training, but the training has been postponed, keeping him in place to work on the bill. His deputy, Harry Jung, has said he will depart in two weeks. Industry: settle ethics, don't stall the bill Crypto industry advocates have pressed lawmakers to avoid letting ethics language derail the broader package. Blockchain Association CEO and former CFTC commissioner Summer Mersinger said July 16 at the Injective Summit in Washington that the bill's core terms were "very close to agreement," with only a few details left, and called ethics the "elephant in the room." She urged Congress not to let the issue undermine work on the rest of the measure. Coinbase Vice President Ryan VanGrack, a former SEC official, told CNBC in mid-July: "The CLARITY Act is at the one-yard line, and the momentum for passage is clear." Senate Majority Leader John Thune offered a more guarded view, saying there is a path to agreement but time is running out. Democratic criticism has focused on the ethics framework itself. Sen. Chris Murphy said July 14 on Facebook that the CLARITY Act is "a bill backed by the crypto industry" aimed at expanding its influence over banking and the broader economy, and called for explicit limits on the president and family members issuing cryptocurrencies while in office, including meme tokens and stablecoins. Sens. Elizabeth Warren, Jack Reed, Chris Van Hollen and others said in mid-July they "cannot support the current version" of the bill, citing the need for stronger consumer protection, tougher conflict-of-interest and ethics rules, and more safeguards against fraud and market manipulation. Sen. Mark Warner said he is "very pessimistic" about progress. Market watch: whales, ETFs and crypto treasuries On-chain activity CryptoQuant data through July 20 shows addresses holding 1,000 to 10,000 BTC net accumulated about 66,700 BTC over 60 days, the strongest buying since mid-February. Over the same period, addresses holding 100 to 1,000 BTC sold roughly 77,800 BTC. Bitfinex analysts told CoinDesk that whale addresses accumulated more than 270,000 BTC in the first two weeks of July, worth about $16.7 billion. U.S. spot ETF flows SoSoValue weekly data shows U.S. Bitcoin spot ETFs posted eight straight weeks of net outflows starting the week of May 15, with the largest weekly outflow at $1.79 billion in the week of June 26. Flows flipped to net inflows in the week of July 10 at $197 million, followed by another net inflow of $756.7 million in the week of July 17. Ethereum spot ETFs tracked a similar pattern: eight consecutive weeks of net outflows from May 15 to July 2, then net inflows on July 10 and July 17 of $84.42 million and $105 million. Corporate treasury moves Strategy's Bitcoin holdings remain around 844,000 BTC, with no additional purchases over the past two weeks. In mid-July, the company raised $263.5 million via a share issuance and did not immediately add BTC, using the cash as a buffer for preferred dividends and interest payments. Japan-listed Metaplanet added 2,823 BTC in Q2, lifting total holdings to 43,000 BTC, ranking third globally among public companies. On July 21, its subsidiary secured about $59.5 million in convertible bond financing and plans to continue buying BTC. BitMine increased its ETH holdings by 7,430 ETH last week, bringing total holdings to 5.777468 million ETH, about 4.8% of total ETH supply. The company said 85% has been staked, producing an annualized staking yield of roughly $247 million. Over the same period, it repurchased about 5.5 million common shares at an average price of $15.62. Tom Lee said the pace of purchases has slowed, though weekly additions have continued uninterrupted since the reserve strategy began on June 30, 2025. Arthur Hayes buys more ETH Ember Monitoring reported that on July 15, BitMEX co-founder Arthur Hayes bought 1,293 ETH for 2.5 million USDC at $1,933. On July 20, he purchased another $2.5 million of ETH via FalconX and Cumberland OTC at $1,876. In total, Hayes spent 5 million USDC to acquire 2,625.7 ETH at an average price of $1,904. Hayes has said liquidity is being pulled toward AI, weighing on BTC in the short term, but he expects room for a rebound once liquidity rotates back into crypto.