The upcoming vote in the U.S. Senate on the cryptocurrency industry's core legislation, the Clarity Act, has ignited a fierce debate between Democrats and Republicans over ethical restrictions on public officials trading cryptocurrencies.

With President Trump and his family disclosing massive cryptocurrency profits, preventing conflicts of interest has become the key obstacle to the bill's passage in the Senate.

Senate Republicans released the latest draft amendment on the 22nd. This version includes ethical restrictions negotiated between the party and the White House, explicitly prohibiting U.S. government officials, including the President, and their spouses from issuing or launching cryptocurrency projects while in office.

Republicans call these provisions "the most comprehensive ethical code in history," aimed at addressing concerns over high-level conflicts of interest.

However, Democrats and oversight groups strongly dispute this, accusing the draft of having severe loopholes that fail to effectively curb conflicts of interest. Critics note the restrictions only cover officials and their spouses, not their children, and are set to expire in January 2029, making them unable to retroactively affect existing cryptocurrency business ventures. Democrats emphasize they will firmly oppose the bill unless it establishes strict safeguards to prevent high-ranking officials from using cryptocurrencies for personal gain.

The Clarity Act is a core legislative priority long pushed by the U.S. cryptocurrency industry. The House of Representatives passed its version of the bill in 2025. The act aims to clarify the regulatory authority and legal status of cryptocurrencies, significantly weakening enforcement against digital assets. However, after Trump's recent financial report revealed his family's cryptocurrency operations generated hundreds of millions of dollars in profits, triggering market volatility and losses for ordinary investors, the conflict of interest controversy has sharply escalated.

Analysts point out that with Republicans holding only a slim majority in the Senate, the bill's passage depends on support from some Democrats. With Congress heading into its August recess and midterm elections approaching, if the bipartisan stalemate over ethical restrictions cannot be broken, the legislative process for the Clarity Act risks stalling.