President Trump accepted unprecedented ethics restrictions that would limit federal officials from issuing or sponsoring digital assets in a failed attempt to secure support for the CLARITY Act. White House crypto adviser Patrick Witt defended the president's ties to the digital asset industry after a Senate vote last week defeated the legislation intended to establish a federal regulatory framework for cryptocurrency.

The administration will now attempt to provide regulatory clarity through executive policies, as the White House considers the bill unlikely to pass during the lame-duck session. Senator Tim Scott and Senator Cynthia Lummis attributed the failure to Senate Democrats, while Witt also blamed banks for derailing the act.