Sen. Elizabeth Warren (D-Mass.) isn't buying what the new crypto bill is selling. On Tuesday, she took aim at the updated Clarity Act, arguing it would supercharge the ethical mess surrounding President Donald Trump's family crypto businesses.
The Senate Banking Committee released a fresh draft of the Clarity Act, a major piece of legislation aimed at creating a federal regulatory framework for cryptocurrency in the U.S. The new version addresses a key sticking point: stablecoin yields. But Warren, the committee's ranking member, remains deeply skeptical.
"Among other flaws, it will turbocharge the massive conflict of interests posed by Donald Trump and his family's crypto ventures," Warren said, calling for "real ethics" guardrails on any crypto bill. She's been a vocal critic of Trump-linked projects like Official Trump (CRYPTO: TRUMP) and the World Liberty Financial platform. The White House didn't immediately respond to a request for comment.
The Banking Committee is scheduled to hold a markup for the legislation on Thursday, following broad agreement from most crypto firms on the stablecoin compromise. Faryar Shirzad, Coinbase's chief policy officer, welcomed the "strong compromise" in the bill. "Markups are rarely this exciting, but we can't wait for the bill to move forward this week," he said.
Committee Chair Sen. Tim Scott (R-S.C.) said the new version delivers "certainty, safeguards, and accountability" while keeping innovation in the U.S. But Democratic support is far from guaranteed. Unresolved disputes remain, including provisions aimed at preventing politicians from profiting off digital assets. Ahead of Thursday's vote, committee members have submitted more than 100 amendments, according to Politico.
The Clarity Act has been a long time coming, and this week's markup could be a make-or-break moment. Whether it clears the committee—and how it handles the ethics questions Warren is raising—will be key to watch.
