Senate Democrats — Chris Murphy, Jeff Merkley, and Chris Van Hollen — have sharply criticized the current version of the CLARITY Act, a bill designed to create a federal regulatory framework for digital assets. Their main demand: prohibit the president, members of Congress, senior officials, and their families from profiting from the cryptocurrency business.
At a press conference on July 14, which also included representatives from the coalitions Americans for Financial Reform and Indivisible, as well as actor and director Ben McKenzie, the senators stated that the bill does not address the conflict of interest issue related to President Donald Trump's and his family's crypto business. "There is no point in creating a new regulatory system if it does not stop Trump's corruption in this industry," Murphy emphasized.
Proposed Measures: MEME Act and End Crypto Corruption Act
Merkley proposed incorporating provisions of the MEME Act or the End Crypto Corruption Act into the CLARITY Act. These acts directly 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 anti-corruption law. It must actually be stopped," Merkley stated.
Van Hollen, who had previously proposed similar restrictions during the Banking Committee's review of the CLARITY Act, also insisted on strengthening measures against money laundering, sanctions evasion, and terrorist financing through DeFi. However, these amendments were rejected or deemed improperly drafted by committee chairman Tim Scott. "If you are developing a law on digital assets, it must protect consumers, limit illegal operations, and eliminate conflicts of interest. The CLARITY Act does not address these tasks," the senator summarized.
What the CLARITY Act Will Change and the Position of Supporters
According to the Banking Committee's version, the CLARITY Act delineates the powers of the SEC and CFTC: the SEC oversees investment contracts, while the CFTC gains primary authority over spot trading of digital commodities. The document also introduces a special disclosure regime for developers and registration for intermediaries. Supporters of the bill argue that it establishes uniform rules for the industry and preserves authorities' powers to combat fraud.
However, as experts note, without anti-corruption provisions, this law risks becoming a tool for legalizing conflicts of interest at the highest level. Consideration of the CLARITY Act is expected next week, starting July 20. To overcome the procedural barrier, the bill will need 60 votes. The White House administration has denied any conflict of interest, stating that the president's assets are managed by trusts.
My analysis: This is a classic example of political struggle where cryptocurrency regulation becomes a bargaining chip. The absence of clear anti-corruption norms in the CLARITY Act is not an accident but a systemic problem that undermines trust in the market. Investors should closely monitor developments: if the bill passes without amendments, it will set a precedent where senior officials can legally combine power and business in the crypto sphere, inevitably leading to new scandals.