Senate Democrats escalated opposition to the Clarity Act on Monday, with Sen. Elizabeth Warren (D-MA) writing a letter demanding the crypto bill include ethics rules barring President Donald Trump and his family from profiting off the sector. Warren's letter follows filings revealing Trump made over $1.2 billion on crypto ventures last year. On Tuesday, additional Senate Democrats including Chris Murphy (D-CT) and Chris Van Hollen (D-MD) are scheduled to hold a press conference opposing the bill. The legislation faces a narrowing window to pass, with less than four weeks remaining before Congress' August recess, and requires at least seven Democratic votes in the Senate to reach the 60-vote threshold.
Warren Demands Ethics Restrictions in Monday Letter
Sen. Elizabeth Warren wrote a letter on Monday urging Senate leadership to ensure the Clarity Act includes language preventing President Donald Trump, the vice president, senior administration officials, members of Congress, and their families from profiting off the crypto industry. The bill currently contains no such restrictions. Filings revealed Trump made over $1.2 billion on crypto ventures last year.
"The crypto legislation heading to the Senate floor must prevent the president, vice president, senior administration officials, members of Congress, and their families from profiting off the crypto industry," Warren stated in the letter. "Anything less would be a flagrant giveaway to the president and his family at the expense of the public."
Senate Democrats Schedule Tuesday Press Conference
On Tuesday, several Senate Democrats are set to hold a press conference opposing the Clarity Act. Participants include Chris Murphy (D-CT) and Chris Van Hollen (D-MD), both possible 2028 presidential contenders. The event is expected to address the president's crypto dealings and how the bill would weaken financial oversight more broadly.
Clarity Act Sparks Regulatory Debate
Industry stakeholders argue the Clarity Act would increase regulation of the crypto sector by legalizing most crypto activity in the United States. Others argue the bill would substantially weaken financial regulations in place since the wake of the Great Depression by creating carveouts in longstanding rules for blockchain-based assets.
Bill Faces August Recess Deadline and Vote Requirements
The Clarity Act has been under consideration on Capitol Hill for over a year. Most players involved agree the bill must pass by Congress' August recess, otherwise it will get bogged down by the looming November midterm elections and a possible change in control of the House and Senate. Less than four weeks remain to pass the bill, with several outstanding issues about its language still unresolved.
The legislation requires 60 votes in the Senate, meaning at least seven Democrats, and possibly more, will need to support the bill.
Republican Senate Absences Complicate Vote Count
The number of Republicans active in the Senate has shrunk. Mitch McConnell (R-KY) remains hospitalized after a health issue last month. Lindsey Graham (R-SC) died suddenly over the weekend, though he is soon to be replaced.
Trump Calls for Passage in Graham's Honor
On Monday, President Trump argued the Senate should pass the Clarity Act in honor of the late Graham, whom Trump called a "big supporter" of crypto legislation. Graham was not directly involved in negotiations regarding the Clarity Act and rarely spoke on the subject. He was the only Senate Republican to co-sponsor the 2023 Digital Asset Anti-Money Laundering Act, which crypto groups attacked as "very anti-crypto."
FAQ
What did Sen. Elizabeth Warren demand in her Monday letter?
Warren wrote a letter on Monday urging Senate leadership to ensure the Clarity Act includes language barring President Donald Trump, the vice president, senior administration officials, members of Congress, and their families from profiting off the crypto industry. The bill currently contains no such restrictions.
How many Democratic votes does the Clarity Act need in the Senate?
The Clarity Act requires 60 votes in the Senate to pass, which means at least seven Democrats, and possibly more, will need to support the bill.
What is the deadline for passing the Clarity Act?
Most players involved agree the bill must pass by Congress' August recess, which is less than four weeks away. Otherwise it will get bogged down by the looming November midterm elections and a possible change in control of the House and Senate.
