Senators Tillis and Gallego Finalize New Ethics Compromise for Crypto Bill

Two senators leading negotiations on the CLARITY Act’s ethics provisions have reportedly finalized a new compromise aimed at limiting government officials’ ties to crypto ventures, according to people familiar with the talks.

Ethics Language Remains Central Sticking Point

Republican Senator Thom Tillis and Democratic Senator Ruben Gallego have spent weeks working to bridge disagreements over rules restricting senior officials from holding direct crypto interests, a provision closely tied to President Trump’s own digital asset business. While Trump previously accepted a narrow version of the restriction, Democratic critics argued the language allowed him to avoid meaningful compliance, particularly given Justice Department oversight under his own appointees.

Senate Faces Tight Timeline Before Recess

With only about a week remaining before the Senate’s August recess, lawmakers face mounting pressure to secure the 60 votes needed to advance the bill. Senate Majority Leader John Thune indicated a vote remains possible depending on Democratic support, though he has cautioned that full passage before the break appears unlikely. If cloture proceedings begin soon, supporters believe the bill could still build enough momentum to carry into September.

Additional Disputes Persist

Beyond ethics concerns, negotiators continue debating illicit-finance protections affecting decentralized finance developers and rules governing stablecoin reward programs. Banking industry groups have pushed for stricter language preventing stablecoin issuers from offering incentives resembling interest payments, while White House officials maintain those concerns have already been addressed.

Industry Watches Closely

Crypto industry figures, including Coinbase’s CEO, have expressed cautious optimism about the bill’s progress, though many acknowledge that failure to pass in September could push the legislation into a much more uncertain political environment ahead of the midterm elections.