Crypto▼ Bearish
Blumenthal: Trump Exploiting Crypto Gaps, Demands Divestment
Blumenthal said Trump is exploiting crypto enforcement gaps, called the Clarity Act's ethics provisions insufficient. The bill lacks votes before recess, and Polymarket odds dropped to 32%.
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Sen. Richard Blumenthal (D-Conn.) on Tuesday accused President Donald Trump of exploiting gaps in cryptocurrency regulation, calling the Clarity Act's current form insufficient to prevent abuses. Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, demanded that Trump, his family and administration officials divest all digital assets.
"Crypto is now in a kind of enforcement nether world where we depend on laws that were not designed to protect against crypto abuses," Blumenthal said in a video posted to X. He argued that existing "legal loopholes" and weak enforcement need "real" safeguards, not what he called "smokescreen steps" in the Clarity Act.
The remarks come as the Senate moved the bill to the back burner, spending its final days before the Aug. 8 recess on federal nominations and a Russia sanctions bill. The measure still lacks the votes to pass, according to Senate aides.