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Three US senators oppose CLARITY Act on ethics grounds with vote expected soon
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Three Democratic senators have voiced opposition to the CLARITY Act, a comprehensive crypto market structure bill, citing ethics concerns related to President Donald Trump's crypto dealings. The bill is expected to face a Senate vote before August 10, but its path to passage remains uncertain due to partisan disagreements. Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen held a press conference on Tuesday to announce their stance.
The CLARITY Act, passed by the House almost a year ago, aims to establish clear regulatory rules for digital assets. It is backed by Republican lawmakers and has support from President Trump, who urged its passage in honor of the late Senator Lindsey Graham. The bill is part of the GOP's "Crypto Week" agenda, which also saw the GENIUS stablecoin bill signed into law.
During the press conference, Murphy argued that the bill does not address "Trump's crypto corruption," referencing Trump's $1.4 billion in crypto earnings in 2025 and his family's ventures like World Liberty Financial. "This bill is worthless if it protects Trump's dominance over an industry that he will have more control to regulate," Murphy said. The bill needs 60 votes to pass the Senate, requiring Democratic support in the current 52-47 Republican majority.
The opposition underscores a deepening partisan divide over crypto regulation, with Democrats demanding ethics provisions. Senator Elizabeth Warren also called for addressing "brazen financial corruption" in the legislation. Without changes, the bill may struggle to secure the necessary votes, especially with Senator Mitch McConnell hospitalized, potentially leaving only 51 Republicans present.
Despite Democratic pushback, two law enforcement groupsāthe National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Associationāsupport the bill for its potential to combat digital asset crime. Senate Majority Leader John Thune has pledged a vote before the August recess, though the exact timing is unclear.
Senator Cynthia Lummis, a proponent of CLARITY, said on Monday that lawmakers would release the bill text "in the next few days." The outcome hinges on whether Democrats can secure ethics amendments. The debate highlights the tension between advancing crypto regulation and addressing concerns about presidential conflicts of interest.
