The CLARITY Act, a 616-page bill that would split crypto oversight between the SEC and CFTC, is heading to the Senate floor next week — but it's short of the 60 votes needed, and opposition is mounting from both Democrats and banking groups. Seven Senate Democrats said the revised text still falls short on consumer protection, illicit finance, and market integrity. Senator Angela Alsobrooks said she'll oppose unless ethics rules are strengthened, calling for state attorneys general to have enforcement power. Senator Elizabeth Warren called the bill 'dead on arrival,' arguing it does nothing to prevent President Trump from making $1.4 billion from crypto.
Ethics rules under fire
The bill includes new ethics rules barring public officials — the President, Vice President, lawmakers, and their spouses — from issuing or sponsoring a digital asset in exchange for consideration. That ban runs until January 20, 2029. But Alsobrooks isn't satisfied. She criticized the reliance on the Justice Department alone for enforcement and wants state attorneys general to have their own power to go after violators. The timing isn't great for leadership: Majority Leader John Thune plans to bring the bill to the floor next week, before the August recess, and he needs every vote he can get.
Banking groups push back
Six banking trade groups, led by the American Bankers Association, signed a joint statement expressing concern that the bill puts local lending at risk. They didn't specify exactly how, but the broad worry is that the new federal framework could crowd out community banks or impose compliance costs that hit smaller lenders hardest. That's a fresh headache for Thune, who's already juggling Democratic defections.
Warren's broadside
Warren didn't mince words. She claimed the bill does nothing to prevent President Trump from making $1.4 billion from crypto and declared it 'dead on arrival.' Her critique echoes the seven Senate Democrats who said the revised text still falls short on consumer protection, illicit finance, and market integrity. The group includes Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock.
Thune will try to round up 60 votes next week. If he can't, the bill likely stalls until after the August recess — or longer. The unresolved question is whether any of the seven Democrats can be won over with stronger ethics language, or if the banking groups' concerns will peel off Republican support. The floor vote will tell.
