Trump Backs Down on Ethics Provision, as 'CLARITY Act' Enters Senate's Critical Window
On July 21st, sources report President Trump has agreed to include ethics provisions in the *CLARITY Act*, a major digital asset market structure bill, clearing a key obstacle after months of negotiation. The bill, which has already passed the House, aims to establish federal regulatory clarity for crypto by defining SEC and CFTC roles. The text is expected imminently, with a narrow window for Senate passage before the August recess. However, passage remains uncertain due to potential Democratic opposition over the ethics rules and the absence of key Republican senators.
The ethics clause, a major sticking point, seeks to restrict federal officials, including the president, from profiting from digital assets while in office. This directly addresses controversies around Trump's own crypto holdings. While industry lobbyists urge Congress not to let ethics derail the broader bill, several Democratic senators have demanded stricter provisions covering family members and stronger consumer protections.
Amid this legislative push, on-chain data shows significant Bitcoin accumulation by large holders ("whales") in recent weeks. After extended outflows, U.S. Bitcoin and Ethereum spot ETFs have seen two consecutive weeks of net inflows. Major corporate holders like Strategy and Metaplanet continue to accumulate or hold significant Bitcoin reserves. Notably, BitMEX co-founder Arthur Hayes recently made substantial Ethereum purchases, expressing a view that while AI is absorbing market liquidity, crypto markets have room for a rebound.
marsbit07/21 05:03
