Trump Weighs Ethics Counteroffer as CLARITY Act Nears August Deadline

President Donald Trump is weighing a bipartisan ethics counteroffer for the CLARITY Act as Senate negotiators race to finalize crypto conflict-of-interest rules before the chamber’s August first week recess.

Sens. Thom Tillis and Ruben Gallego sent a state attorneys general enforcement plan to the White House on July 29. The proposal would let state authorities enforce a ban on federal officials issuing or sponsoring digital tokens, addressing a gap flagged by Senate Democrats.

Crypto policy journalist Eleanor Terrett reported on August 1 that Trump is considering the counteroffer as the bill hangs in the balance. The CLARITY Act aims to give crypto firms a federal rulebook by dividing oversight between the SEC and CFTC.

A White House ethics deal reached on July 21 was initially seen as the last major obstacle before a floor vote, but five loopholes emerged two days later. Democrats noted the prior draft gave the DOJ exclusive enforcement while blocking state attorneys general and private parties from suing.

Democratic staff pointed to Trump’s crypto ventures as the reason for wanting oversight independent of the executive branch. A tax disclosure found Trump accrued at least $1.4 billion in 2025 crypto income, including $635 million from TRUMP memecoin royalties and $515 million from World Liberty Financial token sales.

Sen. Cynthia Lummis expressed frustration: “After nearly 11 months of giving almost everything asked of us, I genuinely don’t know what else my Democrat colleagues need.” White House crypto adviser Patrick Witt told reporters: “Make it make sense.”

The House passed its version 294-134 on July 17, 2025, with more than 70 Democrats crossing over—the most bipartisan digital-asset vote ever. The Senate has yet to hold a floor vote, and seven Democrats rejected the latest ethics draft.

Senate Majority Leader John Thune said the chamber will “probably have a vote on the CLARITY Act,” but it needs 60 votes. Coinbase CEO Brian Armstrong said “clear rules are almost here,” calling progress “the one yard line.”

Gallego said lawmakers are close to finalizing language within days. Tillis called the enforcement expansion a workable starting point. As of the weekend, neither the White House nor Senate Democratic leadership had publicly accepted the new language.

Source: https://news.bitcoin.com/crypto-news/trump-clarity-act-ethics-counteroffer-state-attorneys-general/