Ben McKenzie and Senate Democrats oppose the CLARITY Act, arguing it lacks ethics provisions and could allow Trump to profit from crypto holdings while weakening state-level fraud enforcement.
Regulation & Gov ·
Ben McKenzie has joined Senate Democrats at a Capitol Hill anti-corruption forum to oppose the CLARITY Act, citing President Trump's financial interests in crypto as incompatible with the bill's framework. McKenzie contended that lawmakers cannot simultaneously oppose Trump's involvement in digital assets while backing legislation that would permit such holdings to remain in place. Senators Richard Blumenthal and Chris Van Hollen emphasized that the bill contains insufficient safeguards: it does not mandate divestment of Trump's crypto positions, and its ethics provisions would expire in 2029, potentially leaving enforcement gaps. Blumenthal noted that Trump's reported income included $1.4 billion from cryptocurrency profits, which he said the current bill's language would not adequately constrain.
New York Attorney General Letitia James has separately raised concerns that the CLARITY Act would erode state-level authority to pursue crypto fraud enforcement. She warned that reduced regulatory oversight at the state level could undermine investor protections at a time when crypto-related losses continue to affect consumers nationwide. James called for stronger investor safeguards and heightened oversight to preserve financial market stability.
Senate Majority Leader John Thune has temporarily halted consideration of the CLARITY Act as the chamber prioritizes confirmation of government appointees and debate on Russia sanctions legislation, with September now the earliest anticipated return date for the bill.