The US Senate’s CLARITY Act has also caused confusion. According to new reports, the proposed amendment this week lacks significant support from Senate Democrats. Therefore, negotiations remain active before establishing a floor vote.
The disagreement comes even as the crypto industry continues to push the currency. It is widely regarded as one of the major efforts to establish clear digital content laws in the United States.
Democrats Want More Information
At a press conference on Capitol Hill, Senators Chris Murphy, Jeff Merkley, Chris Van Hollen, and Elizabeth Warren argued that passing the CLARITY Act without addressing Trump’s crypto interests would create a regulatory framework. However, it would also allow elected officials to continue to benefit from the digital economy.
Murphy said there is no point in creating new crypto regulations if they fail to prevent what Democrats describe as conflicts of interest. In addition, the group wants language that prevents government officials, including the president, from owning a crypto business while in office.
The White House has previously indicated that it supports a code of conduct that applies equally to everyone. However, it opposes the provision of one office holder.
Senate Math Has Been a Big Problem
Political figures are making negotiations more difficult.
Republicans currently control 52 seats in the Senate, but the CLARITY Act needs 60 votes to win a majority. This means that at least seven Democratic senators must support the bill.
With several Democrats publicly opposed to the existing provisions, the legislation is in jeopardy unless both parties reach a moral compromise. Senate Majority Leader John Thune continues to push for a vote before the Aug. 10 recess. Meanwhile, Senator Cynthia Lummis said the revised statement should be released within days.
Ripple Protects Bill
Not everyone agrees with the democratic process.
Ripple’s global director of public policy, Lauren Belive, said that rejecting the CLARITY Act would ultimately hurt crypto users instead of politicians. According to Belive, the bill will improve consumer protection and reduce legal uncertainty. This uncertainty currently exposes investors to negative outcomes.
Meanwhile, Lummis continues to frame the legislation as a matter of economic freedom rather than a moral argument.
Crypto Market Monitors Every Move
Political uncertainty is already affecting market sentiment.
Polymarket’s odds of the CLARITY Act passing in 2026 have dropped significantly from around 82% in February to around 36%. The change reflects growing skepticism.
Institutional demand has shown mixed signals. In the most recent week, Bitcoin ETFs recorded a total of $197 million, while Ethereum ETFs added $84.4 million. This ended eight consecutive weeks of outages. Solana ETFs also invested less. On the other hand, XRP ETFs saw $7.18 million in outflows, making XRP the only major US spot crypto ETF to record weekly withdrawals.
The next big development will come from the negotiations between the leaders of the Senate and the White House. The final word on the ethics policy could determine whether the CLARITY Act passes this summer or is delayed further.
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