TLDRRepublicans and the White House reportedly agreed on new crypto ethics restrictions.Updated language would limit federal officials from issuing or sponsoring digital assets.The CLARITY Act would divide oversight between the SEC and CFTC.Democrats remain concerned about ethics safeguards and their limited role in negotiations.Senate leaders face a tight deadline before the August recess.Senate negotiations accelerated after Republicans and the White House reached a reported agreement on new federal ethics restrictions. The CLARITY Act now enters a decisive phase, although Democratic support remains uncertain before the August recess. Updated language would restrict presidents and other federal officials from issuing or sponsoring cryptocurrencies and related digital assets.Ethics Agreement Changes Senate NegotiationsRepublicans added the ethics provisions Wednesday as Senate leaders worked to resolve a central Democratic objection. CNBC obtained the updated text, which introduces the first statutory limits on presidential profits from cryptocurrency activities. The White House agreement moved the CLARITY Act forward, but Democrats reportedly had limited involvement in the negotiations.JUST IN: CNBC reports on CLARITY ACT"There was a reported agreement yesterday between Republicans and The White House on ethics..as far as I've heard Democrats were not privy to this..they still have concerns..these next few weeks are critical" pic.twitter.com/kjbQur88hv— Bitcoin Magazine (@BitcoinMagazine) July 22, 2026A CNBC report described the remaining political uncertainty surrounding the compromise and the Senate timetable.“There was a reported agreement yesterday between Republicans and the White House on ethics,” the report said. It added that Democrats “were not privy to this” and still held concerns about the proposed language.Democrats have sought broader conflict-of-interest safeguards covering elected officials, spouses, and digital asset business relationships. Republicans must secure enough bipartisan support to overcome Senate procedural barriers and advance the CLARITY Act. Lawmakers also continue discussions involving stablecoins, federal preemption, anti-money-laundering rules, and enforcement authority.Bill Establishes Federal Market OversightThe CLARITY Act would create the first broad federal market structure for cryptocurrencies and digital asset businesses. It would divide regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The framework generally places digital commodities under CFTC oversight while preserving SEC authority over qualifying securities.The bill would establish registration standards, disclosure duties, customer protections, and rules against fraud and market manipulation. It would also bring covered digital commodity platforms under federal anti-money-laundering and customer verification requirements. Supporters say the CLARITY Act would replace uncertain enforcement actions with defined obligations for market participants.The House passed its version in July 2025 by a 294-134 vote with support from both parties. The Senate Banking Committee advanced separate language in May 2026 through a 15-9 vote. Two Democrats joined committee Republicans, but the legislation still requires wider support during full Senate consideration.The post CLARITY Act Enters Crucial Senate Negotiation Phase appeared first on Blockonomi.