Congress’ efforts to pass a major cryptocurrency bill before the midterms face a major test this month.
After returning from August recess, the Senate will try to advance the Digital Asset Market Clarity Act, meant to clear up confusion about how federal regulators share oversight of cryptocurrency.
But the bill could be blocked by Democrats who demand that it include stronger provisions cracking down on President Trump’s ability to profit from cryptocurrency investments.
The bill text includes provisions blocking the president and other officials from issuing or sponsoring cryptocurrency.
However, Democrats want additional restrictions to block his family from profiting from cryptocurrency, as well as to target holdings the president and officials already have.
The president reported over $1.4 billion in income from cryptocurrency in 2025. He has told reporters that he’s not directly involved in his investments, which are placed in a blind account run by separate institutions.
In July, Democratic senators released a statement rejecting the bill.
“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,” they wrote.
On Thursday, Republicans released an updated version of the bill that altered some regulations but did not include the overhaul of the ethics section requested by Democrats.
Sen. Cynthia Lummis, Wyoming Republican, called on Democrats to get it across the finish line.
“Overall, this text contains over 100 changes requested by Democrats. Let’s get this done!” she wrote in a social media post.
Sen. Chris Murphy, Connecticut Democrat, is unlikely to support it.
“It’s a bad bill from beginning to end,” he said. “It is going to jeopardize the stability of our entire economy. … There has to be a section of this bill that says the president and his family members cannot issue a cryptocurrency.”
In July 2025, the House acted on a version of the bipartisan legislation, which it passed by a 294-134 vote.
Top administration officials are pushing for the bill’s swift passage.
“I strongly urge everyone to remain at the negotiating table, agree to the motion to proceed, and continue the legislative process,” Treasury Secretary Scott Bessent said in a social media post.
“Failing to do so would send a troubling signal to our allies and adversaries alike that America is unwilling to lead on the future of digital assets and willing to forgo enhanced national security tools to combat their misuse.”
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