CLARITY Act Stalls as Democrats Demand Trump Crypto Ethics Deal

The CLARITY Act remains stalled in Congress since January, initially over stablecoin rewards, with May seen as a potential Senate turning point. However, a Politico report says the key obstacle has shifted to ethics provisions that could restrict Trump from active involvement in crypto. Sen. Ruben Gallego, a Democrat supporting the bill, said there is “no final bill” or “no final movement” without a bipartisan ethics agreement. The pressure is tied to growing frustration over Trump family crypto businesses, which critics claim represent over $1 billion in family wealth and could benefit from a “light-touch” regulatory stance. The White House and Senate Republicans largely reject any conflict-of-interest claims, but both sides appear to recognize a deal may be necessary to advance the legislation. The process adds complexity: Senate Banking Committee Republicans want to move the CLARITY Act in coming weeks, yet ethics language is outside the committee’s jurisdiction, so the committee markup likely won’t include it. Gallego still wants clear guidance on how the ethics provisions will be handled before the bill reaches the floor. Meanwhile, the article notes total crypto market cap at about $2.4T (TradingView). Overall, the CLARITY Act’s uncertainty—especially around Trump crypto ethics—could keep risk sentiment choppy into Senate negotiations.