Senator Warren Statement on New Text of the Clarity Act

Senator Warren Statement on New Text of the Clarity Act

Banking Committee Minority Staff Release Analysis Illustrating How Crypto Bill Riddled With Massive Loopholes Does Nothing to Prevent Trump From Making His Next $1.4 Billion in Crypto Profits

Watch Warren explain glaring loopholes in the bill here

Committee Analysis on Ethics Loopholes (PDF)

Washington, DC - U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee released the following statement on Senate Republicans' new text of crypto market structure legislation:

"Donald Trump raked in more than $1.4 billion from cryptocurrency ventures, and this bill does nothing to prevent him from vacuuming up his next $1.4 billion in crypto profits. Even if it did, the President can, and will, simply ignore the law because he handpicked his personal lawyer to lead the Department of Justice that is charged with enforcement and everyone else - including state attorneys general - are explicitly prohibited from bringing any enforcement actions. The bill goes even further to protect the President's crypto profits by barring the next Department of Justice from ever holding Trump accountable. On top of all of this, the underlying bill still fails to adequately protect investors, our financial system, and our national security. This bill should be dead on arrival."

The Minority Staff of the Senate Banking, Housing, and Urban Affairs Committee-led by Ranking Member Warren-released a new analysis detailing how the latest version of Clarity is riddled with massive loopholes and does nothing to prevent the President from making his next $1.4 billion in crypto profits. Read the analysis here and below:

FACT SHEET: Trump-Republican Crypto Ethics "Compromise"
Analysis from the Minority Staff of the Senate Banking Committee

The Minority Staff of the Senate Banking Committee reviewed the new Trump-Republican crypto ethics legislative language released on July 22, 2026. President Trump made more than $1.4 billion from his cryptocurrency ventures in 2025 alone - nearly two-thirds of his income, making his empire thehighest-earning U.S. enterprise in all of crypto in 2025. In a new analysis, Committee staff found that these provisions are riddled with major loopholes and would not prevent the President from making his next $1.4 billion in crypto profits.

Even if these provisions did cover the President's crypto profits, Trump could simply ignore the law and refuse to comply because his handpicked Department of Justice is charged with enforcement. State attorneys general and private parties would be specifically barred from ever bringing an enforcement action. A sunset clause also makes clear that once Trump leaves office, the next Department of Justice would be barred from enforcing the law for any violations he committed.

The bill would allow Trump to continue making hundreds of millions through World Liberty Financial and his other crypto ventures.
The ethics provisions do not restrict the primary ways Trump has raked in more than a billion dollars in crypto profits since he took office: using a series of intermediaries and licensing agreements to funnel money from World Liberty Financial tokens, stablecoin reserves, and memecoin royalties. Trump would also be permitted to retain holdings of other crypto assets that he did not issue or sponsor, all while being able to make and influence crypto-related policy, to direct the regulators tasked with overseeing the crypto industry-as well as officials implementing and enforcing these ethics restrictions-and to fire them if they refuse his direction. According to his financial disclosures, Trump made $799 million from World Liberty Financial.

The bill would allow Trump to profit from new crypto ventures while in office.
As drafted, the bill would allow Trump to profit from new crypto ventures so long as they're structured to fit the loopholes in the bill's restrictions. New ventures could be structured so that he never formally issues or sponsors the product himself, for example by having family members or Trump-affiliated entities launch it. It would also allow him to continue hosting his memecoin dinners and appearing at events to promote crypto ventures.

The bill would allow Trump to continue profiting from memecoin sales.
Instead of turning off this scheme, the bill specifically provides that Trump "shall not be deemed to violate" the law if a crypto issuer or sponsor already using his name, image, or likeness continues to do so-even if it's for minting or selling additional digital assets after passage of the law. This means that he could continue making money off his $TRUMP memecoin that launched three days before his inauguration and made him $636 million in 2025 alone.

The bill would allow Trump to invest unlimited amounts of money in crypto assets while making decisions about how to regulate the crypto industry.

• The latest draft makes clear that "nothing" in the text should be read to prohibit Trump from "making any statement or taking an official governmental action on digital asset policy, digital asset legislation, or digital asset regulation in the exercise of official duties."

• Trump would be permitted to hold, trade, and invest unlimited amounts of money in crypto assets, even as he makes official decisions that affect the specific value of those assets. The bill expressly provides that "nothing" in the ethics section would prohibit Trump from "holding any digital asset as an investment."

• According to his 2025 financial disclosure, Trump held at least $100 million in Bitcoin and Ethereum.

The bill guarantees that the law could never be enforced against Trump.

• President Trump will never comply with even the limited restrictions of this proposal - because he will face no consequences for ignoring them even if it becomes law.
  
  
• Trump's own Attorney General-who has said before Congress that he "is [Trump's] lawyer"-is the only official with the authority to police violations of the law until the day Trump leaves office. This is the same Department of Justice that settled a case in a private agreement with Trump to let him set up a $1.8 billion slush fund from taxpayer funds until it was blocked by a federal court.

• The bill categorically precludes state attorneys general or anyone else from bringing an action to enforce the law.

• The authority for even the Department of Justice to enforce the law turns off as soon as Donald Trump leaves office. That means the next Justice of Department would be barred from holding Trump accountable for even egregious violations of the law that Trump commits during his presidency.

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