Ethics concerns drive three Democratic senators to reject CLARITY Act ahead of imminent vote
John Thune, the Senate Majority Leader, has indicated the crypto market structure legislation will face a vote prior to August 10, but questions remain about sufficient Democratic backing for passage.
A comprehensive legislative proposal designed to create market structure regulations for digital assets is anticipated to face a Senate vote in the near future, with Republican support driving the effort while certain Democratic members maintain their insistence on ethical safeguards.
During a press conference held on Tuesday, three Senate Democrats—Chris Murphy, Jeff Merkley, and Chris Van Hollen—joined forces with advocacy group representatives from Americans for Financial Reform and Indivisible, as well as actor Ben McKenzie from Hollywood, to voice their objections to the Digital Asset Market Clarity (CLARITY) Act. These legislators argued that the proposed legislation fails to tackle what they characterized as "[Donald] Trump's crypto corruption," a reference to the US President's various connections to the cryptocurrency sector, including his memecoin venture, the World Liberty Financial company operated by his family members, and additional business interests and financial holdings.
"There is no reason to pass a new regulatory system for crypto if this system does not stop Trump's corruption of the entire industry. This bill is worthless if it protects Trump's dominance over an industry that he will have more control to regulate. In fact, the bill is in and of itself a fundamental corruption if it gives Trump's corruption the protection of law."
Senator Chris Murphy
Deliberations surrounding the CLARITY Act have continued within the US Senate since the legislation successfully cleared the House of Representatives nearly one year ago this week, part of the Republican Party's "Crypto Week" legislative push that also saw the GENIUS stablecoin bill enacted into law. For Senate passage and subsequent return to the House, the bill requires 60 affirmative votes, which means Democratic support is essential given the Republicans' narrow majority control of the chamber.
The trio of Van Hollen, Murphy and Merkley aren't alone among Senate Democrats in declaring they won't back the legislation without explicit ethics-focused provisions in response to Trump's disclosure that his cryptocurrency business activities generated $1.4 billion in earnings during 2025. Elizabeth Warren, a senator who has been a vocal critic regarding numerous cryptocurrency-related matters in the chamber, has similarly demanded that the legislation confront what she described as "brazen financial corruption."
Notwithstanding opposition from numerous legislators, the CLARITY Act has garnered endorsements from a pair of law enforcement organizations. Both the National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association have expressed their support for the cryptocurrency legislation, arguing it would provide valuable tools for combating crimes involving digital assets.
Senate majority leader says vote will happen before August work period
According to Bloomberg reporting, John Thune, who serves as majority leader in the US Senate, has committed to scheduling a vote on the cryptocurrency bill prior to the chamber's departure for a state work period beginning Aug. 10. As of Tuesday, the Senate calendar did not contain specific details regarding the precise timing of this vote.
Trump has already expressed his support for the CLARITY Act, issuing a statement on Monday calling on Senate members to approve the bill "in honor of" Senator Lindsey Graham, who passed away during the weekend. The president characterized the South Carolina lawmaker as having been "a big supporter" of the proposed legislation, though Graham does not seem to have issued any public statements explicitly endorsing CLARITY.
Graham's passing left the Republican party holding a 52-47 majority in the chamber, and given that Senator Mitch McConnell remained hospitalized as of Tuesday, the party potentially faces having only 51 members present when the vote occurs.
On Monday, Senator Cynthia Lummis, among the congressional champions of CLARITY, announced that legislators would make the bill's text available "in the next few days."