Clarity Act Crypto Bill Stalls on Ethics Concerns

The Clarity Act, a comprehensive crypto regulation bill, has stalled in the US Senate. The main obstacle is not Republicans, but Democrats who are holding out due to concerns about ethics language that they claim will let President Trump avoid accountability.

The bill, which needs at least seven Democratic votes to pass, would bar federal officials and their spouses from issuing or sponsoring new digital assets while in office. However, the current version of the bill only applies to new issuances, leaving Trump's existing crypto income streams untouched.

According to Trump's 2025 disclosures, his crypto income surged to $1.4 billion, including $636 million from the TRUMP meme coin and over $500 million from World Liberty Financial. Critics argue that this provision is incoherent, given that it allows Trump to continue profiting from crypto.

Senator Elizabeth Warren has expressed her opposition to the bill, stating, 'If it doesn't stop the president from profiting off crypto, then it's not really' ethics.' Other senators, including Chris Murphy and Jeff Merkley, have also spoken out against the bill, calling it corrupt and arguing that enforcement by a presidentially appointed attorney general amounts to retroactive immunity.