CLARITY Act Senate Hurdle: Democrats Demand Trump Crypto Curbs

The Senate version of the CLARITY Act stalled this week as an updated draft failed to win broad Democratic support, people familiar with the talks said. The legislation, one of the most ambitious efforts to set federal rules for digital assets, now faces an uncertain path to a floor vote before the August 10 recess.

At a Capitol Hill press conference, Senators Chris Murphy, Jeff Merkley, Chris Van Hollen, and Elizabeth Warren argued the bill should not advance without language limiting President Trump's ability to maintain personal crypto business interests. Murphy said there is little value in new crypto rules if they fail to prevent conflicts of interest. The group wants provisions that restrict senior government officials, including the president, from holding crypto holdings while in office.

The White House has said it supports ethics rules that apply equally to everyone. The administration opposes provisions aimed at a single officeholder.

The math makes the standoff consequential. Republicans hold 52 Senate seats. The CLARITY Act needs 60 votes to overcome a filibuster. At least seven Democrats must support it. With several Democrats publicly opposing the current version, the bill stalls unless both parties reach a compromise on ethics.