Trump Crypto Ethics Deal Fails to Win Democrats on CLARITY Act

Senate Republicans recently added strict crypto trading restrictions for top elected officials into the CLARITY Act. They hoped this ethical compromise would secure bipartisan support and push the bill through Congress.

Despite the new rules, Democratic resistance has grown stronger. Senator Angela Alsobrooks led the pushback, arguing that the current measures do not go far enough to protect the financial system from conflicts of interest.

This political standoff is already hurting the bill's momentum. Prediction markets show that expectations for the bill passing in 2026 have dropped by 15 percentage points since their peak on July 21.

Traders and industry watchers should keep a close eye on upcoming negotiations in the Senate. If lawmakers cannot find common ground soon, major crypto legislation might face a long delay.