Clarity Act Draft Puts New Ethics Wall on President Trump’s Crypto Holdings

The U.S. Senate is turning the long‑awaited crypto market‑structure blueprint into a final draft, and the new Clarity Act includes provisions that will bar President Donald Trump from holding crypto assets directly.

Presidential Ethics Clause: Conflict‑Prevention Provision

The draft imposes a ban on the president and senior officials from direct crypto holdings until 2029, delegating oversight of ethics complaints to the Department of Justice.

■Donald Trump disclosed $1 billion in crypto earnings for 2025.

■Violations are slated for enforcement within 12 months.

■The language was shaped in final talks between Senator Cynthia Lummis (R‑WY) and Senator Angela Alsobrooks (D‑MD).

Party Dynamics and the 60‑Vote Threshold

To enact the bill, the Senate must secure a 60‑vote supermajority, which translates to at least 10 Democratic votes. Democrats remain wary of the ethics section, keeping the outcome uncertain.

■John Thune, Senate Majority Leader, aims to bring the draft to the floor before the summer recess.

■10 Democratic votes are the critical threshold for passage.

■Cody Carbone, CEO of Digital Chamber, called the draft “a meaningful step toward the Senate vote.”

Positive Signal for DeFi: Blockchain Regulatory Certainty Preserved

The Blockchain Regulatory Certainty Act clause remains intact, meaning developers who do not control user assets will not be classified as “money transmitters.”

■Miller Whitehouse‑Levine, CEO of the Solana Policy Institute, highlighted the clear regulatory treatment for tokens and fundraising.

■New language adds federal preemption, provisional registration procedures, and commodity pool operator rules.

■DeFi protocols anticipate a 5‑7% increase in liquidity inflows as compliance costs ease.

Market Reaction and Liquidity Flows

Following the draft’s release, major exchanges like Binance recorded net inflows, signaling renewed confidence in the sector.

■Binance controls roughly 55% of user funds and 24% of spot market volume.

■Early July saw net inflows, while the tracked market displayed outflows.

■Analysts project a 3‑4% drop in volatility for stablecoin yield products if the bill passes.

Markets anticipate that the bill’s approval will bring a more predictable regulatory environment for crypto in the United States, making DeFi projects more attractive to institutional investors. However, the ethics provisions and partisan dynamics introduce short‑term uncertainty that could spark volatility.