White House pushes back as key Democrats rejects CLARITY Act’s crypto ethics
Senate Democrats rejected the latest CLARITY Act draft, saying its ethics language is still too weak on conflicts of interest, illicit finance, and enforcement. Senate Republicans revised the bill on July 22 to bar top federal officials from issuing or sponsoring digital assets for compensation while in office, require divestment or blind trusts for certain crypto holdings, mandate disclosures for sales over $1,000, and give the Justice Department civil enforcement power. The dispute centers on whether the rules would meaningfully limit President Trump’s crypto-related businesses and past activity. Democrats including Warren argue the bill could still let Trump profit heavily from crypto. The White House says the remaining fight is over state AG enforcement and retroactive limits on Trump, pushing back against those demands. Republicans need at least seven Democrats to clear a Senate procedural hurdle, but several GOP senators also want further changes. Industry leaders warn that the ethics fight could derail broader market rules for exchanges, intermediaries, and illicit finance.
