New York Attorney General Letitia James warned that the CLARITY Act could weaken state oversight of crypto fraud, while actor Ben McKenzie joined Senate Democrats to oppose the bill over President Trump’s financial ties to the digital asset industry. McKenzie argued the legislation would allow “Trump’s crypto corruption” to continue. Senate Majority Leader John Thune has put the bill on hold, with September as the earliest possible return for consideration.
Actor Ben McKenzie joined Senate Democrats Richard Blumenthal and Chris Van Hollen at a Capitol Hill anti-corruption forum on Monday to lobby against the CLARITY Act. He argued that lawmakers could not oppose “Trump’s crypto corruption” while supporting the legislation.
Democrats continue to push for stronger ethics rules, consumer protections and national security safeguards in the bill. Blumenthal warned that the updated version still leaves loopholes allowing President Trump to profit from his crypto ventures. “Donald Trump made $2 billion last year, and $1.4 billion of his income last year consists of cryptocurrency profits that exploit weaknesses in the current law,” he said.
The current CLARITY Act does not require Trump to divest his crypto holdings. Its ethics provisions would expire in 2029, leaving enforcement to the Department of Justice, which Blumenthal said would not be enough.
New York Attorney General Letitia James warned that the CLARITY Act could weaken state enforcement against crypto fraud. She said the proposal would limit the state’s ability to hold digital asset platforms accountable as crypto scams continue to cost Americans billions of dollars annually.
James finished by saying that strict rules are needed to maintain trust in financial markets. She warned that without sufficient laws and oversight, there would be financial crises.
Senate Majority Leader John Thune has put the CLARITY Act on hold for now as the Senate focuses on confirming government nominees and debating a Russia sanctions bill. This pushes the crypto bill off the pre-recess agenda, with September now the earliest expected return for consideration.
