Democratic senators block CLARITY crypto bill over ethics

A major cryptocurrency regulatory bill faces an uncertain future in the U.S. Senate as a group of Democratic senators has vowed to block it unless stricter ethics provisions are added, citing President Donald Trump’s financial ties to the industry. The Digital Asset Market Clarity (CLARITY) Act, which aims to establish a federal framework for digital assets, is scheduled for a Senate vote before the chamber begins a recess on August 10.

The legislation, which passed the House of Representatives in July 2025, would shift a significant portion of regulatory authority over digital assets from the Securities and Exchange Commission to the Commodity Futures Trading Commission and set registration and custody rules for crypto firms. Senate Majority Leader John Thune has committed to holding a vote before the August recess, though an exact date has not been set on the official calendar.

Opposition solidified on July 14 when Democratic Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen held a press conference announcing they would not support the bill without amendments barring senior government officials and their families from profiting from the cryptocurrency industry. They...