Key Takeaways:
The White House agreed to the CLARITY Act ethics package on July 21, removing the conflict-of-interest rules that had blocked the crypto market structure bill for months.
"The president has agreed to the most aggressive ethics language in the history of the United States," Senator Bernie Moreno, an Ohio Republican, said, according to CNBC.
The ethics package would stop the president, vice president, lawmakers and senior officials from profiting from crypto while in office. Trump's annual disclosure listed $635 million in meme coin royalties and $515 million from World Liberty Financial token sales. The Department of Justice would enforce the rules, not state attorneys general, Senator Kevin Cramer, a North Dakota Republican, confirmed.
The bill needs 60 Senate votes to overcome a filibuster. Republicans hold 53 seats, requiring at least seven Democrats to cross over. Treasury Secretary Scott Bessent said lawmakers are at the "1-yard line," with the Senate aiming to pass the bill before the August recess starting Aug. 10.
Bitcoin climbed 2% to $66,604 as of 14:30 UTC, according to CoinGecko. The broader crypto market added $63 billion in value, rising 2.8% to $2.32 trillion. Coinbase stock jumped as much as 12% on the news.
The House passed the CLARITY Act 294-134 in a bipartisan vote on July 17, 2025. The bill stalled in the Senate over the ethics clause. Senate Banking advanced the bill 15-9 on May 14, with Democrats Ruben Gallego and Angela Alsobrooks joining all 13 Republicans.
Polymarket traders gave the legislation a 43% chance of becoming law by the end of 2026, down from a May peak of 73%. The prediction market reflects the narrow legislative window: the Senate has less than four weeks before the August recess, and lawmakers must still finalize the merged Banking-Agriculture package, secure floor time and win House approval of any Senate revisions.
FM Intelligence projected Bitcoin could reach $200,000 by May 2027 if the CLARITY Act passes, assigning a 50% probability to a base case of $95,000 to $130,000 over the next 12 months. Bloomberg analyst Eric Balchunas said renewed ETF demand could cause "price explosions," though he warned that demand can be "fickle and come in waves."
White House crypto adviser Patrick Witt deferred his mandatory military training with the Georgia Army National Guard to remain in his post through the negotiations. Deputy crypto council director Harry Jung is expected to take over if the bill advances.
This article is for informational purposes only and does not constitute investment advice.
