Senate Crypto Bill Hits Snags Over Ethics Language and Illicit Finance Provisions

The US Senate's plans to pass its crypto market structure legislation, the CLARITY Act, by August 7 are looking increasingly unlikely. In an appearance on Fox News, Senate Majority Leader John Thune (R-SD) said 'we will probably have a vote on the CLARITY Act,' but given the complex Senate rules regarding timing and procedure, this can be read as 'it ain't gonna happen.' The bill's main sticking point is its ethics language, which Democrats want to limit President Trump's ability to make major bank from crypto ventures.

Despite growing media attention on Trump's profiteering, Democrats seem determined to force him to publicly resist efforts to restrain his activities ahead of the 2026 midterm elections. The argument over CLARITY's 'illicit finance' language is also still a matter of debate. While some lawmen and lawwomen support the revised text, others, like New York Attorney General Letitia James, have expressed opposition, saying it will reduce the number of cops on the beat and pre-empt states' investor protection laws.

Meanwhile, new polling data suggests that Trump's base may not see his billion-dollar-plus crypto profits as scandalous. According to a report by More in Common, 35% of Trump voters believe he 'uses the presidency for personal benefit more' than other recent presidents, while 24% say it is about the same.

The CLARITY Act's fate remains uncertain, with some lawmakers hoping to revise its ethics language and send it to the White House for consideration in the next couple of days. However, given the complex Senate rules and the various interests at play, it seems unlikely that a vote will be held by August 7.