Democratic lawmakers are opposing the latest draft of the CLARITY Act, arguing that its ethics provisions fail to adequately address President Trump's ongoing cryptocurrency interests. While several lawmakers have signaled willingness to support the legislation if stronger provisions are incorporated, the bill has already drawn backing from major crypto industry players including Coinbase and Ripple.

Democrats Challenge CLARITY Act Draft

Republican lawmakers released the newest draft of the CLARITY Act on Wednesday, July 22. The 616-page bill quickly drew support from prominent figures in the cryptocurrency industry but faced immediate pushback from Democratic legislators who contend the ethics provisions are too weak to address President Trump's crypto ties.

Senator Angela Alsobrooks stated that the current draft falls short and called for key provisions to be strengthened. "The Republican-proposed text of the CLARITY Act as it currently stands falls short. Key provisions including those addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity must be strengthened," she said.

President Trump and his family remain actively involved in the cryptocurrency sector, with interests including a popular memecoin and World Liberty Financial, a decentralized protocol that operates a borrowing-and-lending platform. According to financial disclosures, President Trump received millions tied to WLF.

Enforcement Mechanism Criticized as Incomplete

The draft prohibits public officials and their spouses from sponsoring and issuing digital assets but does not extend the restriction to other family members. It also includes a clause under which the restrictions would expire in January 2029 and designates the Justice Department as the enforcement authority.

Those details have become central to the Democratic objections because the dispute is not only over digital asset market structure, but also over whether Congress should attach conflict-of-interest limits to any new crypto framework.

Senator Ruben Gallego supported the bill during committee proceedings but has ruled out backing it on the Senate floor unless the ethics language is revised. Alongside Alsobrooks and Gallego, Senate Democrats Catherine Cortez Masto and Cory Booker have also come out against the bill in its current form.

Senator Elizabeth Warren took to X to criticize the bill, stating: "The new draft of the Senate GOP crypto bill does nothing to stop President Trump from making his next $1.4 billion from crypto. It'll supercharge Trump's crypto corruption. This bill should be dead on arrival."

Amanda Fischer, Chief Operating Officer and policy director for Better Markets and former chief of staff for Gary Gensler, argued that the draft does little to change President Trump's entanglement with crypto. "The bottom line: Doesn't change much at all about Trump's existing crypto grift. No divestment required. Maybe stops new crypto grifts, but it's up to his personal attorney [Acting U.S. Attorney General] Todd Blanche to enforce. Amnesty kicks in as soon as the new POTUS is inaugurated," she said.

Crypto Industry Voices Strong Support

Prominent figures from the cryptocurrency industry have thrown their weight behind the legislation. Supporters highlighted that the bill retains software developer protections and argued it would deliver regulatory clarity while strengthening the United States' position in the digital asset sector.

Ji Hun Kim, CEO of the Crypto Council for Innovation, urged bipartisan cooperation to move the bill forward. Miller Whitehouse-Levine, CEO of the Solana Policy Institute, called on Congress to "seize the moment."

The most vocal support came from Coinbase and Ripple. Coinbase CEO Brian Armstrong argued that the absence of a clear regulatory framework has harmed the industry and allowed incidents such as the FTX collapse to damage consumers. Stuart Alderoty, Chief Legal Officer at Ripple, said the bill equips law enforcement agencies with the tools needed to pursue bad actors. Ripple CEO Brad Garlinghouse stated that the bill does not need to be perfect to merit passage.

Supporters are urging Congress to hold a vote before the August recess, though that timeline hinges on whether Democrats and Republicans can reach a timely compromise. The next key test is whether negotiators can adjust the ethics language enough to keep Democratic votes in play without losing the industry support that has formed around the current draft.