Senate Set to Vote on Crypto Bill as Democrats Demand Trump Ethics Curbs

The Senate will vote Tuesday on whether to advance legislation creating a new regulatory framework for cryptocurrency, a decision that could determine the fate of a bill stalled by Democratic demands for stronger ethics provisions targeting President Donald Trump's personal crypto investments.

The procedural vote, scheduled for Tuesday afternoon, requires 60 votes to move forward in the 53-47 Senate, meaning Republican leaders need Democratic support. The outcome is uncertain as negotiations continued into Tuesday morning.

At issue is the Clarity Act, which supporters say would provide legal certainty for the $2.3 trillion crypto market and protect consumers through clearer rules and enforcement against bad actors. The industry has pushed aggressively for uniform regulation and has become a major political force, spending more than $130 million in the 2024 congressional races.

Democrats broadly support regulating crypto but insist the bill include safeguards to prevent Trump and his family from profiting from digital assets while he is in office. They point to the president's meme coin launched before his second term, his family's controlling stake in the crypto firm World Liberty Financial, and his disclosure of more than $500 million in revenue from crypto products last year.

"Let's make sure that we do not pass a crypto bill that will let Donald Trump continue to rake in billions of dollars in crypto profits while working families across this country struggle," said Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee.

Trump has agreed to concessions, including restrictions on federal elected officials issuing digital assets and added powers for state attorneys general to enforce crypto measures. But most Democrats say the Republican proposal lacks sufficient enforcement and want a requirement for the president or future presidents to divest holdings above a certain value.

Arizona Sen. Ruben Gallego, involved in last-minute talks, said the latest version "leaves a lot to be desired." Democrats sent a counteroffer late Monday to expand the ethics provision, though it remained unclear whether a deal could be reached before the vote.

Republican Sen. Thom Tillis of North Carolina, who has worked with Gallego on the ethics language, said he was pleased with Trump's latest concessions and would vote to proceed. "We're so close," he said. "It's just a shame to not take this opportunity."

Sen. Cynthia Lummis of Wyoming, a lead sponsor, warned that a no vote would mean "opposing real ethics reforms on politicians' personal investments, handing American leadership in digital assets to our foreign competitors, and leaving Americans with zero protections." She later posted on X that it was "now or never for the Clarity Act."

Opponents argue the bill is a giveaway to an industry that has become a generous donor to candidates in both parties. "It's no secret that they are seeking to ram a bill through Congress based upon not the merits of the bill, but the threat that they will spend even more money in elections against people who vote against it," said Sen. Chris Murphy of Connecticut.

Republicans who have worked on the legislation for more than a year say it could stall indefinitely if the Senate does not advance it Tuesday, with Congress out of session in October and the midterm elections approaching.