The Senate's version of the Digital Asset Market Clarity Act is still caught on a political question that reaches beyond market structure: how tightly to restrict crypto activity by the president and other senior officials.

CoinDesk reported that Democrats negotiating the bill had pushed for conflict-of-interest language aimed at President Donald Trump's crypto business interests. A circulating draft now includes ethics language, but the dispute has shifted to enforcement, timing, and whether the limits are strong enough to win Democratic votes.

The reported draft would put enforcement in federal law-enforcement hands and cap penalties at $500,000. CoinDesk also reported that the language is temporary, a compromise that may keep some Republican support but has not resolved Democratic objections. The disagreement matters because the bill would need 60 Senate votes, meaning Republicans cannot pass it alone if Democratic negotiators walk away.

The CLARITY Act is the Senate's main vehicle for defining how U.S. spot crypto markets would be overseen, including the roles of the SEC and CFTC. Sen. Cynthia Lummis, who chairs the Senate Banking digital-assets subcommittee, has continued to press for a vote, saying the bill should pass now.

For the crypto industry, the latest draft is progress but not closure. The ethics section may determine whether the market-structure bill advances before Congress leaves for its summer break.