Clarity Act Fails Key Senate Vote Over Trump’s Crypto Wealth Dispute

The Clarity Act failed to clear its first Senate hurdle Tuesday, falling short of the 60 votes needed as Democrats held firm against ethics language tied to President Trump’s crypto holdings.

Ethics Fight Sinks The Vote

The bill’s lead Republican sponsor had called the vote a make-or-break moment beforehand. Republicans had revised the bill to let state attorneys general sue crypto exchanges and the Justice Department over ethics violations, requiring officials to divest major crypto holdings or use a blind trust. Democrats argued this leaves enforcement against the president dependent on the Justice Department’s own discretion, calling it toothless. A Monday counteroffer from Democrats sought broader restrictions covering Trump’s family and stricter divestment rules, but Republicans rejected it before the vote.

What Happens Next

With the bill’s path uncertain and midterm campaigning approaching, another Senate vote could still happen if floor time allows, though House action would wait until after November. Meanwhile, the SEC and CFTC continue advancing their own crypto rules independently, with SEC leadership saying the agency will keep progressing regardless of the bill’s fate.