Overview
- Reports on Tuesday, July 21 said President Trump accepted expansive ethics language that negotiators have long fought over and that had stalled the CLARITY Act.
- Senators involved in talks signaled enforcement would fall to the U.S. Department of Justice rather than state attorneys general, a change Republicans favor and Democrats say concentrates power.
- Prediction markets moved sharply higher into the low‑to‑mid 40 percent range and bitcoin rose above $66,000 after the reported breakthrough, reflecting renewed market optimism.
- No final bill text has been released and several Senate Democrats have not reviewed or backed the new language, while separate disputes over stablecoin yields, DeFi rules and intermediary definitions remain unresolved.
- The CLARITY Act, which passed the House in July 2025 and would split asset oversight between the SEC and CFTC, still needs about 60 Senate votes before the early‑August recess and faces heavy industry lobbying and committee work before becoming law.