Three Democratic senators have opposed the Digital Asset Market Clarity Act unless lawmakers add stronger ethics rules covering senior officials and their families.
Summary
- Murphy, Merkley and Van Hollen oppose the CLARITY Act unless lawmakers add strict ethics safeguards.
- John Thune pledged a Senate vote before recess, but timing and Democratic support remain uncertain.
- The bill needs 60 votes, making bipartisan support essential amid disputes over ethics and DeFi.
Senators Chris Murphy, Jeff Merkley and Chris Van Hollen raised their objections during a July 14 press conference organized with Americans for Financial Reform and Indivisible.
The lawmakers tied their opposition to President Donald Trump’s crypto businesses, including his memecoin and the World Liberty Financial project. Murphy claimed Trump earned $1.4 billion from crypto in 2025. Trump has rejected claims of wrongdoing involving his digital asset interests.
Senators demand conflict-of-interest protections
Murphy said Congress should not create a new crypto framework without rules that prevent officials from profiting from the industry they regulate. He said, “There is no reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption.”
Merkley called for restrictions covering the president, vice president, Cabinet officials, members of Congress and their families. Van Hollen also argued that the bill needs stronger consumer, anti-crime and conflict-of-interest provisions before he can support it.
The lawmakers did not reject digital asset regulation as a general goal. Their position centers on whether the final Senate text includes enforceable ethics language. Senator Elizabeth Warren has made a similar demand, calling for restrictions on crypto profits involving senior government officials.
Thune commits to vote before August recess
Senate Majority Leader John Thune told Bloomberg Government that the chamber will vote on the CLARITY Act during the current work period. He said leaders had not fixed the exact date and added that Democratic support remains the main question.
The press conference organizers listed July 20 as the expected vote date. However, Thune only committed to action before the recess and said the exact timing remained undecided.
The Senate’s official calendar starts its state work period on Aug. 10, leaving Aug. 7 as the final scheduled session day before the break. As of July 15, the public Senate floor schedule did not list a CLARITY Act vote, leaving the reported timing still subject to change.
The bill needs 60 votes, so Republicans cannot pass it without Democratic support. The House approved the CLARITY Act in July 2025 by a 294-134 vote. The measure would divide digital asset oversight between the SEC and CFTC while setting registration and custody rules for crypto firms.
Ethics dispute adds to unresolved policy fights
As previously reported, ethics rules are one of three disputes shaping the Senate negotiations. Lawmakers also remain divided over protections for non-custodial developers and whether crypto platforms may offer rewards tied to stablecoin balances.
The ethics debate has gained urgency as senators prepare a combined draft from the Banking and Agriculture committees. Supporters want a durable federal framework, while opponents say the bill should not move without clear limits on financial conflicts involving public officials.
Bill also gains law enforcement support
The National Organization of Black Law Enforcement Executives and Federal Law Enforcement Officers Association have backed the bill. FLEOA also requested tighter DeFi accountability rules and language preserving federal investigative powers.
As reported by crypto.news, the two endorsements give supporters added backing before the Senate vote. However, the ethics opposition shows that the bill still lacks the bipartisan coalition needed for passage. The final wording and vote date remain unsettled.
