Senate Democrats Slam Clarity Act Draft for Allowing Trump Crypto Profits

Senate Democrats are criticizing a new draft of the Clarity Act, which aims to regulate the digital asset market. The criticism comes from Senator Elizabeth Warren, who argues that the current draft leaves major loopholes that would allow President Donald Trump to continue profiting from crypto ventures while in office without meaningful enforcement.

The latest draft of the Clarity Act fails to block Trump from earning further crypto income through existing and new ventures, according to a minority staff report. Warren points out that Trump earned over $1.4 billion from crypto in 2025 alone, including $799 million from World Liberty Financial and $636 million from the TRUMP memecoin.

The bill's enforcement provisions restrict violations to Department of Justice action during Trump's presidency, barring state attorneys general and private parties. Additionally, a sunset clause limits post-presidency investigations, which Warren views as weakening investor protection, financial system safeguards, and national security oversight.

Warren argues that the draft would allow continued profits from the TRUMP memecoin because it says a crypto issuer or sponsor already using Trump's name, image, or likeness would not be deemed in violation if that use continues after the law's passage. She also notes that new ventures could be structured through family members or Trump-affiliated entities.