White House Crypto Advisor: Trump Makes 'Historic' Ethical Compromise for CLARITY Act, Republicans M

On September 15, White House crypto advisor Patrick Witt stated that White House officials met with Trump last Friday to explain the government ethics provisions in the latest version of the CLARITY Act. Trump subsequently agreed to make further concessions. The related restrictions may require Trump to transfer his crypto asset investments into a blind trust and grant certain accountability powers to the states. Witt described this as the 'strongest' and 'historic, unprecedented' arrangement in federal ethics law, while Trump was informed that these provisions could not be used for political attacks against him.

The Senate Republicans released a new version of the bill text on Sunday evening, continuing to compromise with Democrats on issues such as government ethics and criminal liability for DeFi projects. Witt indicated that Republicans have accepted about 95% of the demands from Democratic negotiators; if lawmakers still oppose the bill at this point, their decision may be more politically motivated than based on policy differences.

However, Democratic staffers on the Senate Banking Committee believe the new text still grants too much authority to officials appointed by Trump, particularly the U.S. Attorney General, which could hinder the enforcement of the ethics provisions. Under the current design, state attorneys general cannot directly hold the President, Vice President, members of Congress, and federal judges accountable for violations, but they can take action against crypto trading platforms with improper assets and the U.S. Attorney General. Additionally, multiple state attorneys general, banking groups, and some individuals in the crypto industry have raised objections regarding enforcement powers, stablecoin yields, and DeFi provisions.

The Senate will first conduct a procedural vote, requiring at least 60 votes for the bill to proceed to further consideration. Even if the threshold is met, it will still need to undergo amendment discussions and other votes; if ultimately approved by the Senate, it must be sent back to the House for further action. Witt stated that even if the bill fails to pass, the SEC and CFTC will continue to advance the development of crypto regulatory rules.