The CLARITY Act, aimed at crypto market structure, faces Senate hurdles due to Democratic demands for ethics provisions linked to Trump.
The CLARITY Act, passed by the House in July 2025, remains stalled in the Senate as lawmakers debate ethics provisions tied to President Trump’s crypto industry connections. The bill, part of Republicans’ ‘Crypto Week’ agenda, has yet to be scheduled for a vote, with no public text available as of Tuesday. Delays stem from government shutdowns and disputes over tokenization, stablecoin rewards, and developer protections from enforcement actions.
Senate Democrats, including Elizabeth Warren and Chris Murphy, argue the bill lacks sufficient safeguards against conflicts of interest, citing Trump’s memecoin holdings and his family’s World Liberty Financial business. The 60-vote threshold for passage remains uncertain, despite industry and bipartisan support. Trump urged Senate action last week, invoking the late Senator Lindsey Graham’s backing.
Market participants are monitoring the bill’s progress, as its passage could reshape crypto regulation. However, the August recess looms, further complicating its timeline. No immediate market reaction was reported.