Democratic Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen have voiced their opposition to the current version of the CLARITY Act. They are demanding a ban on the President, members of Congress, high-ranking officials, and their families from profiting from the crypto business.

We're joining @ChrisMurphyCT, @IndivisibleTeam & @ben_mckenzie on Capitol Hill today to discuss the dangers of the CLARITY Act, its failure to rein in Trump’s crypto schemes, and concerns over political corruption and the crypto industry's influence in DChttps://t.co/SUXVoinSJZ

— AFR (@RealBankReform) July 14, 2026

The lawmakers presented their stance at a press conference on July 14, which also featured representatives from Americans for Financial Reform and Indivisible, as well as actor, author of "Easy Money," and director of a cryptocurrency documentary, Ben McKenzie.

The senators stated that while the bill establishes a regulatory framework for digital assets, it fails to eliminate conflicts of interest related to the cryptocurrency business of President Donald Trump and his family.

“There’s no point in creating a new regulatory system for cryptocurrencies if it doesn’t stop Trump’s corruption in this industry,” Murphy emphasized.

He argued that the anti-corruption section should prevent the President from influencing industry rules in which he has financial interests.

Senators Call for Ban on Officials

Merkley proposed incorporating provisions from the MEME Act or the End Crypto Corruption Act into the CLARITY Act. These would prohibit the President, Vice President, Cabinet members, high-ranking federal officials, Congress members, and their immediate relatives from owning crypto businesses, promoting digital assets, or profiting from them.

“It’s not enough to prepare an amendment or a separate anti-corruption bill. It needs to be truly stopped,” Merkley stated.

Van Hollen suggested similar restrictions during the Senate Banking Committee's review of the CLARITY Act. His initiative would bar officials and their relatives from owning, promoting, or being associated with digital asset issuers and crypto platforms.

Some of the Democrats' amendments were rejected by vote, while others were deemed improperly drafted by Committee Chairman Tim Scott and were not considered.

Van Hollen also proposed strengthening measures against money laundering, sanctions evasion, and terrorism financing through DeFi, enhancing disclosure requirements, and imposing additional restrictions on insider trading. These provisions did not make it into the committee-approved version.

“If we’re going to develop a law on digital assets, it must protect consumers, limit illegal operations, and eliminate conflicts of interest. The CLARITY Act does not address these issues,” the senator asserted.

Supporters of the bill argue that it introduces disclosure requirements, maintains authorities' powers to combat fraud, and establishes uniform rules for the industry.

What the CLARITY Act Will Change

The CLARITY Act aims to create a federal regulatory framework for the digital asset market and delineate the powers of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

According to the Banking Committee version, the SEC will continue to oversee operations related to investment contracts and capital raising, while the CFTC will gain primary authority over spot trading of digital commodities.

The document also includes a special disclosure regime for developers of crypto projects, registration for intermediaries, and collaboration between the two regulators.

According to Americans for Financial Reform, the CLARITY Act is expected to be reviewed next week, starting July 20. To overcome procedural hurdles, the bill will require 60 votes.

Earlier, CFTC Chairman Michael Seliger urged for the swift passage of the bill, warning that regulators would “write all the rules” for the crypto industry if Congress does not move toward a resolution. Trump later echoed this demand to the Senate.

In early July, Senate Banking Committee member Elizabeth Warren called for the CLARITY Act not to be brought to a final vote without provisions preventing the President from using his office to profit from digital assets.

Meanwhile, the bill has received support from the National Organization of Black Law Enforcement Executives and the Federal Association of Law Enforcement Officers. They believe that uniform federal rules will help combat crimes related to digital assets.

The White House administration dismissed any claims of conflicts of interest. Press Secretary Anna Kelly stated that neither the President nor his family have engaged in or intend to engage in conflicts of interest. As Trump noted in a conversation with reporters, he does not manage his personal finances, and his assets are managed by trusts.

It is worth noting that in July, American banking associations urged the Senate to clarify the CLARITY Act's provisions regarding stablecoin yields. They believe the current wording leaves room for payments that are economically similar to interest on deposits.