US Senate crypto bill stalls as Democrats demand Trump ethics rules
A push to establish the first comprehensive US regulatory framework for digital assets faces a likely Senate defeat after Democrats tied the bill to Donald Trump’s financial ties to the industry.
Senate Majority Leader John Thune has pledged to hold a vote on the Digital Asset Market Clarity (CLARITY) Act before the chamber's Aug. 10 recess, but the legislation lacks the Democratic support required to pass. Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen publicly committed on Tuesday to voting against the measure unless it includes strict ethics provisions.
The bill requires 60 votes to advance, a high threshold given the Republican majority's current constraints. Following the death of Senator Lindsey Graham and the hospitalization of Senator Mitch McConnell, Republicans can currently muster only 51 present votes. This leaves the market structure legislation entirely dependent on bipartisan cooperation, which has now fractured over the president's personal crypto ventures.
Opponents are leveraging Trump's disclosure that he earned $1.4 billion from crypto ventures in 2025 to argue the bill creates a direct conflict of interest. “There is no reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption of the entire industry,” said Murphy. He added that the legislation amounts to a “fundamental corruption” if it grants legal protection to the president's dominance over an industry he regulates.
The CLARITY Act has been stalled in the Senate since passing the House almost a year ago as part of a broader Republican push that included the GENIUS stablecoin law. While Senator Elizabeth Warren has also condemned the legislation as "brazen financial corruption," the bill does retain backing from law enforcement groups. The National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association support the measure as a tool to combat digital asset crime.
Senator Cynthia Lummis, a leading Republican advocate, said lawmakers plan to release the final text in the next few days. However, Trump’s direct intervention on Monday—urging the Senate to pass the bill "in honor of" Graham—has only deepened the partisan divide, leaving the long-awaited regulatory framework for digital markets with an uncertain path forward.
