A key cryptocurrency regulation bill in the U.S. has faced serious opposition. Democratic Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen have spoken out against the current version of the CLARITY Act, demanding the inclusion of strict anti-corruption provisions that would directly affect President Donald Trump and his family.
At a press conference on July 14, the lawmakers stated that the bill, which creates a new regulatory framework for digital assets, completely ignores the obvious conflict of interest related to the president's crypto business. "There is no point in creating a new system for regulating cryptocurrencies if it does not stop Trump's corruption in this industry," Murphy emphasized.
Anti-Corruption Amendments: What the Senators Propose
Merkley insists on including provisions from the MEME Act or the End Crypto Corruption Act in the CLARITY Act. These documents 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 profiting from them. "It is not enough to prepare an amendment or a separate law against corruption. It must actually be stopped," the senator stated.
Earlier, Van Hollen had already attempted to introduce similar restrictions during the CLARITY Act's consideration in the Banking Committee. His initiative blocked the possibility for officials and their families to own, promote, or be associated with digital asset issuers and crypto platforms. However, the Democratic amendments were rejected: some failed in votes, while others were deemed improperly drafted by Committee Chairman Tim Scott.
Additionally, Van Hollen proposed strengthening measures against money laundering, sanctions evasion, and terrorist financing through DeFi, expanding disclosure requirements, and introducing restrictions on insider trading. None of these provisions were included in the version approved by the committee.
What the CLARITY Act Will Change and Why It Matters
The CLARITY Act 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 registration for intermediaries.
According to Americans for Financial Reform, the bill is expected to be considered next week, starting July 20. It will require 60 votes to overcome the procedural hurdle. Earlier, CFTC Chairman Michael Selig called for accelerated adoption, threatening that regulators would "write all the rules" themselves if Congress fails to act. Trump made a similar demand.
Meanwhile, the White House administration denies any conflict of interest. Press Secretary Anna Kelly stated that neither the president nor his family has allowed or intends to allow a conflict. Trump, in turn, noted that he does not handle personal finances, and his assets are managed by trusts.
My comment: The situation surrounding the CLARITY Act is a classic example of how political interests and personal financial motives can torpedo crucial regulatory initiatives. While Democrats demand transparency, Republicans and the White House seem ready to pass the law at any cost, even if it leaves loopholes for corruption. The market needs clear rules, but if they are adopted under pressure from personal interests, trust in them will be undermined from the start.