CLARITY Act prospects bleak! Democrats criticize Trump family for earning billions and refusing to cooperate

The U.S. Senate Agriculture Committee 12:11 passes the CLARITY Act, with Democrats collectively opposing. Democratic lead negotiator Cory Booker criticizes the Trump family for earning billions but refusing ethical regulations. The bill requires 60 votes; with only 53 Republican seats, 7 Democratic senators need to be persuaded. Three amendments are rejected, and prospects for the midterm elections look bleak.

12:11 Narrow Passage Reveals Complete Partisan Split

At the end of January 2026, the U.S. Senate Agriculture Committee narrowly passed the CLARITY Act aimed at regulating the structure of the cryptocurrency market, with a vote of 12 to 11 along party lines. “This is an important step toward establishing clear rules for the digital asset market,” said Republican Chairman John Boozman, hoping this move will build momentum within the Senate to push legislation forward.

However, due to collective opposition from Democratic senators, the committee vote was only barely passed, reflecting strict partisan division. The 12:11 vote means all 12 Republican members voted in favor, all 11 Democratic members voted against, with no cross-party votes. Such complete partisan division is not uncommon in U.S. legislative history, but for bills requiring bipartisan cooperation to pass the full chamber, it is a very ominous sign.

Therefore, many observers see this as a “limited substantive progress” step, and whether the bill can become law remains uncertain. The Senate Agriculture Committee’s approval is only the first step in a long legislative process. According to Senate legislative procedures, a bill generally needs at least 60 votes to overcome lengthy debate (filibuster) and pass. Currently, Republicans hold a narrow majority with 53 seats, meaning even if all Republican senators support it, at least 7 Democratic senators must join to cross the 60-vote threshold.

However, Democratic members of the Agriculture Committee have already collectively voted against the bill and publicly expressed strong opposition. This makes committee-level approval more symbolic, with substantive legislative progress still very limited, and core issues unresolved. From the narrow 12:11 passage to the need for 60 votes in the full chamber, the CLARITY Act faces an almost insurmountable gap.

Trump’s Billions in Interests Become the Biggest Deadlock

Democratic lead negotiator, New Jersey Senator Cory Booker, attributes the partisan shift in negotiations to the Trump administration. He strongly stated at a hearing: “The White House has made this incredibly difficult. It’s absurd that the President and his family have earned billions from this industry but still refuse to adopt ethical regulations that could prevent such severe corruption—this will undermine our democracy.”

This accusation hits at the core deadlock of the CLARITY Act. According to a Financial Times investigation, the Trump family has earned over $1 billion in pre-tax profits over the past year through crypto ventures such as TRUMP and MELANIA meme coins, World Liberty Financial platform, and others. Democrats worry that without clear restrictions, high-level government officials could profit from the crypto industry, damaging public trust. Senior Democratic Congressman Public Citizen even mockingly called the current version of the bill the “grypto bill” (a play on “crypto” and “grift,” implying profiting under the guise of crypto).

During deliberations, Democrats proposed three amendments, the most critical being the “Digital Asset Ethics Act,” which would restrict presidents, vice presidents, Congress members, and candidates from engaging in issuance, sponsorship, or endorsement of digital assets. The other two amendments aimed to combat “crypto ATM/self-service kiosk” scams and prohibit federal aid to bankrupt crypto institutions. However, all three amendments were rejected by Republicans.

Ethical issues remain the main obstacle to bipartisan cooperation. Democrats have consistently pushed to include provisions restricting officials from participating in crypto businesses to prevent ongoing corruption. These provisions, which clearly target President Trump’s interests, are unlikely to gain broad Republican support or compromise. Boozman acknowledged fundamental policy differences but said he remains committed to working with Democrats and added, “What we want is a bipartisan bill.” However, all three amendments were rejected, showing no signs of cooperation or compromise.

From Bipartisan Cooperation to Sudden Negotiation Breakdown

Last November, building on the “Digital Asset Market Transparency Act” passed by the House in July, the Senate Agriculture Committee released a draft of legislation for crypto industry regulation. Co-authored by Boozman and Democratic Senator Cory Booker, this discussion draft was seen as a very meaningful and positive step, despite many unresolved issues.

“From last November until the end of the year, we worked daily from 9 to 5, holding weeks of meetings with all stakeholders, collecting feedback and ideas with Boozman’s team,” a Senate Democratic aide familiar with the matter told The Block. He described the negotiations as initially being “a very good bipartisan process,” but things changed abruptly at the start of the new year.

“We really felt we were very close to reaching a bipartisan agreement,” the aide said. “In early January, Boozman’s team suddenly told us there was a change, secretly drafted a new version of the bill, and planned to start deliberations on January 15.” Boozman’s team claimed they had made enough revisions to the bill text and it was time to vote. However, this bill overturned months of bipartisan cooperation.

Although the collaboration broke down, before holding hearings, Democrats still tried to persuade Republican members of the Agriculture Committee to return to negotiations to reach a bipartisan consensus before the official vote. But ultimately, the bill was put to a party-line vote. Without Democratic support, it will be submitted to the full Senate for consideration. This betrayal has completely destroyed bipartisan trust, making subsequent efforts to seek cross-party support in the full chamber nearly impossible.

Core Content of the CLARITY Bill

Clear Definition of Digital Goods: Authorize CFTC to establish regulation mechanisms for spot market digital commodities

Exchange Registration System: Digital asset exchanges and brokers must register with CFTC and comply with regulations

Investor Protection Measures: Customer fund segregation, conflict of interest prevention, mandatory disclosure of information

Developer Protections: Ensure open-source code, blockchain node operation, and other innovative activities are not restricted

Midterm Election Year and Banking Committee Stagnation Double Kill

Timing also adds uncertainty to the future of the CLARITY bill. 2026 is a midterm election year, and generally, Congress’s willingness and ability to pass major legislation decrease in the months before elections. If this crypto market structure bill cannot make significant progress in the first quarter of 2026, it may be squeezed out of the annual legislative schedule, missing the window. More critically, the November elections could change the majority party in the Senate.

Some analysts point out that if Democrats regain control of the Senate after the election, this unfinished crypto legislation could face significant amendments or shelving. This political reality puts time pressure on Republicans: either push the bill through before the election or accept the risk of losing control afterward. But pushing it through risks abandoning bipartisan cooperation, making it even harder to secure 60 votes.

Additionally, the supporting legislation handled by the Senate Banking Committee remains stalled. Disputes over stablecoin yields and urgent housing legislation issues have delayed the committee’s bill review scheduled for January, with no new date set, likely pushing it into the second quarter. This means that even if the Agriculture Committee’s version proceeds to full chamber discussion, the complete Senate version of crypto legislation is still not formed.

Subsequently, the two committee versions may need to be merged and coordinated with the House-passed version. If the Senate cannot reach consensus on a unified version, the legislative timeline will be further extended. This multi-layered coordination, under current partisan hostility, has a very low chance of success. The complexity of U.S. legislative procedures is the biggest obstacle to the CLARITY bill.

However, some Democrats, including Booker, have expressed that they are not entirely opposed to the legislation itself. They emphasize that as long as key ethics and protection provisions are met, they “are willing to work toward common ground.” But if partisan opposition continues, prospects will likely fade as elections approach. This superficial openness conflicts with the collective opposition votes, indicating Democrats may be reserving space for post-election negotiations.

“The U.S. needs to pass this bill quickly to avoid losing momentum under the current pro-cryptocurrency government leadership,” said Patrick Vetter, Executive Director of the U.S. Digital Asset Advisory Committee. “You may not like every part of the CLARITY bill, but I can guarantee you will dislike the future versions proposed by Democrats even more.” This kind of scare tactic suggests Republicans are trying to pressure the industry into accepting an imperfect bill through time constraints, but its effectiveness remains uncertain.