White House Blocks Ethics Clause in Bipartisan Crypto Bill, Stalling CLARITY Act Progress

The WHITE House has intervened to remove a conflict-of-interest provision from the CLARITY Act, creating legislative gridlock days before Congress'' July recess. The vetoed clause would have barred senior officials—including the President and Vice President—from crypto-related business engagements.

Lawmakers designed the ethics language as a neutral safeguard, mirroring existing disclosure rules. Its rejection follows scrutiny of former President Trump''s reported $1 billion in crypto dealings during his administration. The provision never explicitly named Trump, yet its removal became a non-negotiable White House demand.

Committee-approved markup of the CLARITY Act now hangs in limbo. Democrats had pushed for transparency measures amid growing concerns about political figures'' crypto ties. The stalemate underscores Washington''s struggle to balance innovation with accountability in digital asset governance.