Agreement on Ethics Clause Opens Way for Clarity Act in Senate

A major hurdle for American crypto legislation appears to have been cleared. The White House, together with Republican senators Cynthia Lummis of Wyoming and Bernie Moreno of Ohio, has reached an agreement on an ethics clause in the Clarity Act. This provision is intended to prevent presidents, vice-presidents, members of Congress and other federal officials from profiting from digital assets while they are in office. This clears the way for the bill to proceed to a vote in the Senate.

According to multiple sources, the White House will send the agreed text to a number of Republican senators on Monday afternoon. The exact details of the agreement are still unclear, and the Democrats have not yet seen the text. Nonetheless, industry insiders are hopeful that this will enable the release of an updated version of the bill text in the short term.

Senate has a deadline in its sights

Senator Moreno told journalists on Monday evening that the ethics provision will be enforced by the Department of Justice, and not by state prosecutors. This is a striking choice that will likely spark further debate, especially since the Democrats have not yet been given access to the agreed text.

The Senate is under pressure: the deadline falls in the first week of August. If the Clarity Act passes the Senate, the bill will go back to the House of Representatives, after which it will go to Trump for signature. The parties involved describe the agreement on the ethics clause as the last major hurdle that had to be cleared.

Crypto officials play a key role

Behind the scenes, two crypto advisers from the White House are playing a major role in this process. Patrick Witt, who has been working intensively on the creation of the Clarity Act over the past year, reports that his mandatory military training with the Georgia Army National Guard will be temporarily postponed. This allows him to guide the legislative process to its conclusion.

At the same time, another staff member of the White House Crypto Council has announced that he will leave government service in two weeks. Harry Jung, who works for crypto czar David Sacks, looks back on two years during which the American position on crypto has, in his view, changed dramatically. His departure marks the end of an era for the White House crypto team.