CLARITY Act Stalls Over Enforcement Details and Trump's Crypto Income

The CLARITY Act, a sweeping crypto regulation bill in the US, is stalled on the Senate floor due to an unexpected obstacle: Democrats. Despite the bill needing only seven Democratic votes to pass, none have signed on to the new language added to win their support.

The provision bars federal officials and their spouses from issuing or sponsoring new digital assets while in office, with platforms prohibited from listing anything issued in violation. However, enforcement rests solely with the DOJ, state attorneys general are barred, and the rule is temporary, sunsetting at the end of Trump's term in January 2029.

Critics argue that the provision only touches new issuances, leaving Trump's existing income streams untouched. His 2025 disclosures showed crypto income surging to roughly $1.4 billion, including about $636 million from the TRUMP meme coin and more than $500 million from World Liberty Financial.

Senators Chris Murphy, Chris Van Hollen, and Jeff Merkley have formally opposed the bill, calling it corrupt, with enforcement by a presidentially appointed attorney general and the 2029 sunset amounting to retroactive immunity. The crypto industry wants this passed badly, but the procedural math is brutal: the House passed CLARITY 294-134 a year ago, and the Senate Banking Committee cleared it 15-9 in May.

The White House notes that the restrictions also cover the vice president, lawmakers, and their spouses, not just Trump. Senators Gallego and Tillis are reportedly working on a counter-proposal on the ethics text, the last realistic path to a vote.