Trump-Backed Crypto Bill Stalls in Senate Amid Investor Protection Concerns

A sweeping crypto bill called the Digital Asset Market Clarity Act (CLARITY Act) has stalled in the Senate, despite clearing the House by a wide bipartisan margin last year. The bill, which is supported by multiple crypto companies, would gut investor protections and replace robust Securities and Exchange Commission (SEC) oversight with a more hands-off regulating body.

The Trump family has already made an estimated $2.3 billion from crypto ventures and meme coins, yet his administration has been one of the bill's loudest champions. However, ethics provisions that would address these conflicts have been repeatedly sidelined during negotiations.

Lawmakers are under pressure to move the bill before the August recess, but it needs 60 votes with at least seven Democrats joining Senate Republicans to pass. Congressional Democrats have expressed concerns about enforcement of ethics restrictions being left up to the Department of Justice rather than state attorneys general.