Senate Nears CLARITY Act Vote as Democrats Demand Ethics Guardrails Tied to Trump Crypto Ties

The U.S. Senate is moving toward a floor vote on the Digital Asset Market Clarity (CLARITY) Act, a Republican-backed market-structure proposal that would establish new rules for digital-asset activity. A group of Senate Democrats and several civil-society organizations say the bill's framework is unfinished, arguing it does not address ethics risks connected to President Donald Trump's financial relationships in parts of the crypto industry. At a Tuesday press conference, Sens. Chris Murphy, Jeff Merkley and Chris Van Hollen appeared with representatives from Americans for Financial Reform and Indivisible, as well as actor Ben McKenzie, to denounce what they described as "Trump's crypto corruption." They warned that passing a new regulatory regime without conflict-of-interest constraints would effectively insulate the president's ability to influence the sector. The lawmakers signaled they will not support the CLARITY Act unless ethics safeguards are added. That stance could prove pivotal because the bill faces a 60-vote hurdle in the Senate and would need to return to the House if amended, making some Democratic support likely even with Republicans holding a slim majority. Majority Leader John Thune said the Senate plans to vote before the Aug. 10 work period, though as of Tuesday the Senate calendar had not yet listed a specific vote date. The compressed timeline narrows the window for negotiations on potential amendments, including ethics language, stablecoin provisions and other implementation details. Democratic concerns have centered less on whether crypto rules are needed and more on whether the bill's architecture includes adequate ethics protections. Murphy argued there is "no reason" to create a new system for the industry if it does not prevent what he characterized as corruption, warning the legislation could become a vehicle for shielding the president's influence over regulation. Van Hollen, Murphy and Merkley pointed to recent disclosures by Trump as part of their push, including a reported disclosure that Trump earned $1.4 billion from crypto ventures in 2025. Sen. Elizabeth Warren has also urged changes, calling on lawmakers to address what she described as "brazen financial corruption." The vote math is tighter amid shifting attendance assumptions. The report says Trump urged senators to pass the measure "in honor of" Sen. Lindsey Graham following his death over the weekend, while noting Graham had not publicly endorsed CLARITY. The report also cites the chamber's narrow Republican margin after Graham's death and says Sen. Mitch McConnell remained hospitalized as of Tuesday. With Republicans described as holding a 52-47 majority, expected attendance could materially affect any time-sensitive floor plan. The bill also has support from law-enforcement groups that argue clearer rules would aid efforts to combat digital-asset crime. The National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association have endorsed CLARITY, saying it would strengthen compliance and enforcement in a market often associated with illicit activity. If the Senate changes the bill, it would head back to the House, potentially extending the legislative timeline. With the House having passed the measure roughly a year into the broader Republican "Crypto Week" push, supporters are likely to seek a path that avoids a prolonged reset. For market participants, the looming vote is less about near-term price swings than about regulatory certainty. The next signals to watch include when final legislative text is released, whether ethics language becomes a floor flashpoint, and whether leadership can secure enough support to reach the 60-vote threshold before Aug. 10. This article was originally published as US Senators Clash Over CLARITY Act, Ethics Concerns Spur Vote on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.