A serious conflict is brewing in American politics over cryptocurrency regulation. On July 14, three influential Democratic senators — Chris Murphy, Jeff Merkley, and Chris Van Hollen — sharply criticized the current version of the CLARITY Act, stating that it is unacceptable without the inclusion of anti-corruption provisions directly affecting the U.S. president and his inner circle.
The essence of the senators' complaints is simple and fundamental: the bill, which creates a new regulatory system for digital assets, lacks mechanisms to prevent conflicts of interest for Donald Trump and his family, who are actively involved in the crypto business. "There is no point in building a new regulatory architecture if it cannot stop corruption in this area," Murphy said, emphasizing that the head of state should not influence the rules of the game in an industry where he has personal financial interests.
Demand: Ban officials and their families from profiting from crypto
The senators insist on including provisions from the MEME Act or the End Crypto Corruption Act in the CLARITY Act. These documents propose a direct and strict ban: the president, vice president, cabinet members, senior federal officials, members of Congress, and their immediate relatives cannot own a crypto business, promote digital assets, or profit from them. "It is not enough to simply propose an amendment. Corruption must be stopped, not discussed," Merkley stressed.
Van Hollen, who had already raised this issue during the bill's consideration in the Banking Committee, added that the CLARITY Act in its current form does not protect consumers, does not limit illegal operations, and does not address the conflict of interest problem. His previous amendments, including strengthening measures against money laundering through DeFi and restrictions on insider trading, were rejected or deemed procedurally non-compliant.
What the CLARITY Act will change and why it matters
The CLARITY Act itself is a sweeping document designed to delineate the powers of the SEC and the CFTC, creating a unified federal framework for the digital asset market. The SEC will retain control over investment contracts, while the CFTC will gain key authority over spot trading of digital commodities. However, according to Democrats, without an anti-corruption block, this bill becomes a tool for legalizing the personal financial interests of the current administration.
Consideration of the CLARITY Act is expected next week, starting July 20. To overcome the procedural hurdle, it will need 60 votes. The White House administration, of course, denies any conflict of interest, stating that the president's assets are managed by trusts.
My expert analysis: This situation is a classic example of how political struggle intertwines with regulatory uncertainty. The absence of clear anti-corruption norms in such an important bill is not just an oversight, but a signal to the market that the rules of the game could be written for specific players. If the CLARITY Act passes without these amendments, trust in U.S. cryptocurrency regulation will be undermined for years to come, creating a precedent that the whole world will watch. Investors should closely monitor the vote — its outcome will determine whether the market develops in an environment of transparency or under the shadow of political favoritism.