Senate Releases 616-Page Clarity Act Amid Democratic Opposition Over Ethics Flaws

Senate Republicans released a 616-page version of the Clarity Act cryptocurrency regulation bill on Wednesday, marking the first major legislative effort to oversee the digital asset industry. However, Democrats quickly signaled opposition, arguing that the bill's ethics provisions are too weak to address concerns tied to President Trump's crypto holdings, including his memecoin and family involvement in World Liberty Financial.

The current draft bars public officials and their spouses from issuing or sponsoring digital assets but does not extend protections to other family members. Democrats including Sen. Angela Alsobrooks, Sen. Ruben Gallego, and others called for stronger enforcement mechanisms, saying the Justice Department's authority is insufficient. The provision also includes a sunset clause expiring in January 2029. Banking groups separately opposed the bill on Wednesday, citing concerns that stablecoin rewards could draw deposits away from traditional banks.