Senate Democrats Reject Crypto Bill Over Trump's Profits

The White House is pushing back against Senate Democrats after they signaled they would not support a revised version of the Republicans' landmark cryptocurrency regulation bill. The CLARITY Act, which aims to regulate an industry worth $2.3 trillion, has stalled in the Senate due to concerns over President Donald Trump's involvement in the crypto industry.

Trump made at least $1.4 billion in various crypto-related ventures last year, according to new financial disclosure reports. The administration agreed to an ethics provision in the bill that would bar public officials from issuing or sponsoring crypto for profit, but it only blocks federal officials from issuing new crypto assets and does not prevent the president from profiting off his existing holdings.

Chris Swartz, senior counsel at Democracy Defenders Fund, called the provision a 'caricature of ethics reform' that would allow Trump to continue profiting from his crypto dealings. Senate Democrats want to give state attorneys general the power to enforce the ethics language, but Republicans prefer to keep enforcement with the Justice Department.

With the August recess approaching, lawmakers are running out of time to pass the bill before the midterm elections in November.