Democrats Rejected CLARITY Act Despite Memecoin Provisions

Sen. Cynthia Lummis (R-Wyo.) said Democrats opposed the CLARITY Act despite securing provisions addressing memecoins and other network tokens.

Lummis stated that Democrats were worried about memecoins and requested explicit coverage to prevent them from falling through regulatory gaps.

The CLARITY Act incorporated these requested provisions, but Democrats still rejected it.

Lummis attributed the bill's failure to partisan divisions over President Donald Trump.

Trump's financial disclosure showed his companies generated more than $1.4 billion from crypto ventures, including over $520 million from World Liberty Financial token sales and over $635 million from memecoin royalties.