The U.S. “Digital Asset Market Clarity Act” enters a critical two-week window, with ethical provisions disagreement emerging as the biggest obstacle

Deep Tide TechFlow update: On July 27, according to CoinDesk, the Senate has released the latest consolidated text of the “Digital Asset Market Clarity Act” (Clarity Act). It combines two versions of drafts from the Senate Banking Committee and the Senate Agriculture Committee, and for the first time adds an ethics provision—prohibiting senior government officials from issuing or sponsoring cryptocurrencies. However, there remains considerable uncertainty over whether the bill can pass before the August 7 summer recess.

The core dispute centers on the strength of the ethics provision: Democrats want the clause to substantially constrain the more than $1.4 billion in crypto gains Trump made last year, while the current version that the White House has agreed to only requires Trump to complete the divestment of assets or set up a blind trust within one year, with enforcement handled by the Department of Justice—something Democrats do not trust.

Looking at the timeline, if the Senate files a “motion to proceed” on Monday or Tuesday this week, and reaches consensus on the ethics provision by Thursday, July 30, the bill may still be able to complete a vote before August 7. The crypto industry generally supports the bill’s passage, saying it provides the necessary investor-protection framework; Senator Warren said the bill “should be voted down on arrival.”