The cryptocurrency market structure bill, the CLARITY Act, saw improved support for Section 604 (protection of developers). But the ethics issue may become complicated after reports of US President Donald Trump’s latest windfall of $1.4 billion in cryptocurrencies.
In a letter to the Senate, the Metropolitan Sheriffs of America (MCSA) said they had shifted their position on the bill to “neutral,” citing ongoing talks on Section 604.
We believe there remains an opportunity to further strengthen legislation in ways that support responsible innovation and the practical needs of state and local law enforcement.
The law enforcement group also called for the framework to provide the necessary resources to help federal and state officials effectively implement digital asset policy.
In June, four different law enforcement agencies, Catholic groups, and the banking lobby bidder Article 604 of the draft law, arguing that it would facilitate illicit financial flows.
As such, the neutral stance taken by MCSA demonstrated improved support from some of those who had previously opposed the bill.
For Coinbase CEO Brian Armstrong, the update was “huge,” implying a clearer path to passage of the CLARITY Act, now that enforcement concerns have been addressed.
Will Trump’s $1.4 Billion Cryptocurrency Earnings Derail the CLARITY Act?
However, ethical concerns are back on the table. Recent reports Show The Trump family’s cryptocurrency empire generated more than $1.4 billion in 2025. More than $630 million of the profits came from Trump’s official currency.
Building on the above, Senator Kirsten Gillibrand reiterated ethical concerns and called for elected officials to be banned from creating their own cryptocurrency tokens.
This is a logical requirement that should have broad, bipartisan support – public employees and their spouses should not issue memcoins.
she He added,
We cannot allow self-dealing to destroy the opportunity to strengthen consumer protections, crack down on illicit finance, and expand economic opportunity for millions of Americans left behind by our financial system.
It should be noted that the ethics provisions in the CLARITY Act had a rocky start last month. But Democrats insisted concerns must be addressed before they would support the bill.
In response to Trump’s windfall in crypto, Hasso, a strategic advisor at Lido, raised similar concerns and noted:
It’s a shame what it is. I don’t see how that wouldn’t backfire on the industry in a big way.
The final updated text of the CLARITY Act was expected to be published over the Fourth of July weekend with a possible vote on it in the Senate later in the month.
While Bloomberg predicted a 60% chance the bill would become law this year, Galaxy research is 50-50. It remains to be seen whether ethics provisions will derail the bill’s progress.
Final summary
- Sharif’s group changed its position on the Clarity Law from “opposition” to “neutral.”
- However, Senator Gillibrand renewed his calls for ethics judgments following Trump’s $1.4 billion cryptocurrency profits.
