New developments have taken place in the United States Senate negotiations on the Clarity bill. The White House has reportedly circulated to some Republican senators draft ethics provisions to limit the profits of senior federal officials through digital assets during their tenure. As a result of this, the market is expected to pick up in 2026.
The White House submitted the draft code of ethics.
According to industry sources, the White House agreed with the negotiators on an ethical programme later Monday. The draft is intended to cover the President, the Vice-President, members of Parliament and other senior federal officials, with a focus on limiting their income from encryption-related operations during their tenure.
At present, the complete text has not been made public and the Senate Democrats have yet to review the final version. Previously, the Democrats had regarded enforceable conflict of interest rules as an important condition for the availability of critical votes.
Revision extended to client protection
In addition to ethical restrictions, the negotiations involved disclosure of information, restrictions on insider trading, standards of trusteeship, and precautions against FTX-like events. Participants in the negotiations stated that the Democratic Party wished to place client protection at the centre of the revised framework.
Coinbase now supports the Senate in moving the bill forward. The company had previously objected to the January version, and Brian Armstrong had indicated that he could not support the original draft. As some of the industry ' s concerns were incorporated into the revision, Coinbase was followed by support.
The Senate faces an August deadline.
Polymarket data show that the probability of the CLARITY Act becoming law in 2026 has risen to about 43%, before it fell to almost 30%. The value of the related contracts was approximately $2.06 million, indicating that the market was still tracking legislative progress.
On May 14, the Senate Banking Commission passed the bill by 15 to 9, with two Democrats voting in favour. Next, the Senate still needs to consolidate the versions of the Banking and Agriculture Commissions and to obtain sufficient votes to cross the procedural threshold.
According to the schedule, the Senate will enter the state service on 10 August. As of 21 July, the Court had not been put on the agenda. If the publication and scheduling of the revised text continues to be delayed, the final vote may be postponed until September.
The Chamber of Deputies version is still pending coordination
In July 2025, the House of Representatives passed its own version of the CLARITY Bill, which includes the establishment of a federal regulatory framework for the digital asset market and the delineation of the regulatory responsibilities of the United States Securities and Exchange Commission and the Commodity Futures Trading Commission.
If the text adopted by the Senate differs from that of the Chamber of Deputies, further coordination between the two houses is required before the bill can be sent to Trump for signature. The focus of ongoing negotiations includes ethical constraints, customer protection, a currency stabilization incentive, DeFi rules and enforcement powers.