US President Donald Trump will meet with a group of senators at the White House on Thursday to discuss the CLARITY Act, a crypto market structure bill that has become a flashpoint for ethics and conflict-of-interest debates. Senator Bernie Moreno confirmed the meeting, adding that lawmakers will brief the president on the bill’s path to passage. Senator Cynthia Lummis, a co-sponsor, stated a revised draft will be released within days and expects a Senate floor vote next week, as the chamber races to pass the legislation before the August recess.
The bill aims to divide digital asset oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) while establishing consumer protections. However, Democrats have intensified opposition after Trump’s latest financial disclosure revealed roughly $1.4 billion in crypto-related income, largely tied to his family’s World Liberty Financial operation. Senator Chris Murphy called the current draft a measure that “essentially legalizes Donald Trump’s crypto corruption scheme,” and alongside Senators Jeff Merkley and Chris Van Hollen, is pushing for explicit prohibitions on top officials profiting from crypto ventures they regulate.
Prediction markets reflect the tension: Kalshi gives a 79% chance of a Senate vote before the recess, up from 68.8% the prior day, but only a 36% probability the bill becomes law this year. Polymarket traders assign a 39% chance. Democratic leaders, including Senator Elizabeth Warren, have also requested hearings into Trump’s crypto interests. Industry groups like Coinbase argue that clear regulation is needed to maintain U.S. competitiveness, but the ethics clause remains the main stumbling block, with no agreement yet reached between the parties.
