Is the Whitehouse Still Good for Crypto?

Trump Crypto Ethics Dispute Derails Senate Crypto Bill: Is The Whitehouse Still Good for Crypto?

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Ahmed Barakat
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Ahmed Barakat is a journalist and copywriter based in Georgia with a growing focus on blockchain technology, DeFi, AI, privacy, digital assets, and fintech innovation.

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In Trump crypto news today, the crypto industry has spent hundreds of millions of dollars on campaigns over the past two years to secure a stronger position at the legislative table.

With Donald Trump in the White House, the industry appeared to have an opportunity to advance its highest-priority legislation. Instead, the president’s own involvement in crypto became central to the measure’s collapse.

Senate Democrats blocked the Digital Asset Market Clarity Act on Tuesday after a dozen Democrats who had contributed significant input to its drafting voted against it.

Their objections focused heavily on Trump’s personal crypto interests and on ethics provisions they viewed as inadequate. The outcome left the bill’s prospects in doubt and turned a push for digital-asset legislation into a dispute over presidential conflicts of interest.

Why Did the Trump Crypto Industry’s Big Bill Collapse?

The vote was notable because the opposition did not come simply from lawmakers hostile to the crypto industry. A dozen Democrats helped shape the CLARITY Act and supported a narrower, industry-focused bill the previous year.

But they ultimately voted against the broader package, with several pointing to unresolved concerns about the president’s ability to profit from digital assets while his administration shaped policy affecting the sector.

The CLARITY Act would have given the crypto industry a more favorable regulatory and legal footing after industry participants faced dozens of lawsuits during the Biden administration over compliance with corporate-transparency laws.

Republicans included a presidential ethics provision to win Democratic support. Yet the proposed enforcement structure left oversight with the U.S. Attorney General, meaning the Trump administration would police itself.

That structure became a focal point in negotiations. The bill also faced a separate challenge from the banking industry, which opposed a provision allowing digital-asset service providers to pay rewards to certain stablecoin holders.

Banks warned that the arrangement could draw deposits away from traditional savings accounts, and several Republicans highlighted those concerns.

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The Conflict at the Center of the CLARITY Act

Democrats cited Trump’s crypto activities as a key reason for their opposition to a proposed bill. Sen. Adam Schiff highlighted the administration’s refusal to accept a deal that would end the president’s profiteering from digital assets, framing the issue as an ethics dispute.

Sen. Elissa Slotkin noted that while significant progress had been made on law enforcement and national security concerns, the unresolved conflict of interest kept her from supporting it. Similarly, Sen. Mark Warner argued that Congress couldn’t enact major crypto legislation while the president profited from it.

Sen. Elizabeth Warren, a leading opponent of the bill, pointed to the administration’s approval of a bank charter for a Trump-linked entity as evidence of the unacceptable intertwining of the president’s business interests and administration actions.

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Republicans’ Case: Anti-Trump Politics Sank the Bill

Sen. Cynthia Lummis of Wyoming, a lead author of the CLARITY Act and a prominent crypto advocate in the Senate, offered a different explanation for the vote.

In comments to HuffPost, she said Democratic opposition stemmed mainly from antipathy toward Trump rather than a principled objection to the legislation.

Lummis also characterized the Democratic Party as increasingly hostile to business, free enterprise and the profit motive. She said that opposition was directed particularly at Trump, while also portraying it as part of a broader ideological disagreement over business and markets.

Her argument sits alongside the record of Democratic participation in the bill’s development. The dozen Democrats who voted no had helped provide input on the CLARITY Act and had backed a narrower crypto bill the year before.

Their stated objections focused on Trump’s personal crypto profits and on Republicans’ refusal, in their view, to impose sufficiently strong limits on that conduct.

Lummis had previously expressed concerns about Trump’s crypto involvement. In 2024, before Trump was elected, she told HuffPost that his embrace of crypto made her somewhat uncomfortable and that he should place his assets in a blind trust.

That earlier position underscores how the question of presidential holdings remained relevant even among supporters of crypto legislation.

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Source: cryptonews.com