Three influential Democratic senators — Chris Murphy, Jeff Merkley, and Chris Van Hollen — have issued sharp criticism of the current version of the CLARITY Act. Their main demand: to include strict anti-corruption provisions in the document that would prohibit the president, members of Congress, senior officials, and their families from profiting from the cryptocurrency business.
At a press conference on July 14, also attended by representatives of the Americans for Financial Reform coalition and the Indivisible movement, as well as actor and author of the book "Easy Money" Ben McKenzie, the senators made it clear: without these provisions, the bill is meaningless.
The Corruption Subtext: Why the CLARITY Act in Its Current Form Is Unacceptable
Murphy emphasized that creating a new regulatory system for digital assets is pointless if it does not curb corruption schemes linked to the Trump family's crypto business. According to him, the anti-corruption section must eliminate any influence the president has over industry rules in which he has direct financial interests.
Merkley proposed integrating provisions of the MEME Act or the End Crypto Corruption Act into the CLARITY Act. These acts prohibit the president, vice president, cabinet members, senior federal officials, members of Congress, and their immediate relatives from owning a crypto business, promoting digital assets, or deriving income from them. "It's not enough to draft an amendment — corruption must be stopped," he stated.
Van Hollen, who previously proposed similar restrictions during the bill's consideration in the Senate Banking Committee, noted that his initiative was rejected. Democratic amendments either failed in votes or were deemed improperly drafted by Committee Chairman Tim Scott. As a result, the version approved by the committee lost not only anti-corruption measures but also provisions to combat money laundering, sanctions evasion, and insider trading.
What the CLARITY Act Proposes and Why It Matters
The bill aims to create a federal regulatory framework for the digital asset market, delineating the powers of the SEC and CFTC. The SEC will retain control over investment contracts and capital raising, while the CFTC will gain primary authority over spot trading of digital commodities. The document also introduces a special disclosure regime for developers and mandatory registration of intermediaries.
However, according to Americans for Financial Reform, consideration of the CLARITY Act is expected as early as next week, starting July 20. Overcoming the procedural barrier will require 60 votes. While supporters of the bill argue it protects consumers and establishes uniform rules, opponents insist that without anti-corruption provisions, it is merely a tool for legitimizing conflicts of interest.
Expert Opinion: The situation surrounding the CLARITY Act is a classic example of a political deadlock, where the interests of regulators and the executive branch clash with the need for transparency. If the bill passes without amendments, it will set a dangerous precedent: rules for the crypto industry will be written for a specific player, undermining trust in the market. Investors should closely monitor developments — the outcome of the vote will determine whether the industry gets fair rules of the game or remains hostage to political ambitions.