Key facts
- Senate Democrats oppose the Digital Asset Market Clarity Act due to concerns over President Trump's crypto dealings.
- Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen argue the bill must include conflict-of-interest guardrails.
- President Trump's financial disclosures revealed approximately $1.4 billion in crypto earnings.
- Democrats demand a provision barring senior officials from profiting from crypto ventures they regulate.
- A White House meeting with senators is planned to address the bill's ethics provision.
Senate Democrats are opposing the Digital Asset Market Clarity Act, citing President Donald Trump's recent disclosure of approximately $1.4 billion in crypto earnings as a significant conflict of interest. Senators Chris Murphy (D-Conn.), Jeff Merkley (D-Ore.), and Chris Van Hollen (D-Md.) have labeled the bill a 'corrupt' scheme to legalize Trump's crypto gains and are demanding strong conflict-of-interest guardrails before it can pass.
At a press conference, Senator Murphy stated there is "no reason to pass a new regulatory system for crypto" if it fails to stop the president from profiting from the industry the legislation seeks to govern. The senators pointed to Trump's disclosed income from his family's World Liberty Financial venture as evidence that personal profit, rather than public policy, is driving the White House's push for swift passage.
Senior White House officials are expected to meet with senators to work on closing the gap on the legislation's restriction on senior government officials' personal business interests in the crypto sector. The CLARITY Act, which aims to define regulatory jurisdiction between the CFTC and SEC and enhance consumer protections, passed the House with bipartisan support. However, Democrats hold an effective veto, signaling they will not vote for the bill without a provision barring senior officials and their families from profiting from crypto ventures they help regulate.
Senator Cynthia Lummis (R-Wyo.), who is steering the Senate version of the bill, confirmed that committee text is finalized and ready for floor introduction. Senate Majority Leader John Thune indicated a vote could occur between July 15 and July 20. The bill's passage, and its final form, will significantly impact regulatory policy and the political identity of crypto legislation in the United States.