Clarity Act Hits Wall as Democrats Target Trump Family $1B+ Crypto Empire

The Clarity Act has run into fresh resistance in the Senate. Democrats are pushing for ethics rules tied to President Donald Trump’s crypto interests. What was shaping up to be a bipartisan effort on market structure is now slowing down over concerns about conflicts of interest. With limited time before the next legislative window closes, the bill’s path forward is starting to look uncertain.

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Tillis Demands Ethics Rules Targeting Trump Holdings or Threatens No Vote

Senate Democrats are insisting that the Clarity Act include language restricting how federal officials engage with digital assets. The proposal is aimed at addressing concerns around Trump’s crypto ventures. This has grown significantly over the past year.

According to Politico, Democrats want safeguards that would prevent senior officials from issuing or promoting cryptocurrencies while in office.

The issue has now drawn support from Thom Tillis, a Republican involved in negotiations. Tillis said he would not support the bill without clear ethics language. He stated that he would move from negotiating the bill to voting against it if the provision is not included. Tillis further added,

“There has to be ethics language in the bill before it leaves the Senate, or I’ll go from one of the people working on negotiating it to voting against it.”

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Trump-Linked Crypto Activity Under Scrutiny

Democratic lawmakers, including Adam Schiff and Ruben Gallego, are leading discussions around the proposed provision. Their focus is largely on the Trump family’s crypto activity. This has drawn attention in recent months.

One of the key projects is World Liberty Financial, a venture linked to Trump and his sons. The company has launched a stablecoin, USD1. It has applied for a federal banking license. Separately, the Official Trump meme coin has also been active. This includes hosting a private event for top holders.

The Clarity Act can still move through the Senate Banking Committee without the ethics provision, since the language falls outside its jurisdiction. But passing the bill on the Senate floor will likely require Democratic support. This makes the issue difficult to avoid.

Republicans need at least seven Democratic votes to pass the legislation. At the same time, negotiations are already behind schedule, with the committee markup pushed from April into May.

In addition, recent data shows that the odds of the bill passing in 2026 have dropped to 47% on prediction markets.

With midterm elections approaching and limited time before the August recess, lawmakers are under pressure to reach an agreement. But currently, the Clarity Act remains stalled as both sides continue negotiations over the ethics provision.

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