US Senate Finance Committee Passes CLARITY Act... Partisan Conflict Deepens Over Trump 'Self-Dealing' Ethics Controversy

On May 14, 2026, the US Senate Banking Committee passed the Digital Asset Market Clarity Act (CLARITY Act, H.R. 3633) by a vote of 15 to 9 and sent it to the floor. Chairman Tim Scott hailed it as a 'bipartisan breakthrough' achieved after about a year of good-faith negotiations, but in reality, only two Democratic members voted in favor.

The results of this vote suggest that the prospects for the bill's passage on the floor remain uncertain. In particular, ethical provisions that failed to block the possibility of 'self-dealing' through the head of the executive branch's personal cryptocurrency ventures are facing strong resistance from Democrats, suggesting a difficult journey ahead for the floor vote expected in the coming weeks.

Chairman Tim Scott emphasized that the markup process was bipartisan, but in practice, not a single amendment from the Democratic side was adopted. Only Representatives Ruben Gallego and Angela Alsobrooks voted in favor, while the remaining Democratic members clearly expressed their opposition, raising concerns that the bill could facilitate the pursuit of private interests by specific politicians. The table below shows the specific results of this committee vote.

This bill is paving the way for former President Trump to earn billions of dollars through opaque cryptocurrency transactions while in the White House. Until these issues are addressed, no one, Republican or Democrat, should pass this bill through committee or bring it to the floor.

Critics, including Senator Elizabeth Warren, warn that the current language of the bill could provide massive financial benefits to the personal cryptocurrency business of former President and leading presidential candidate Donald Trump. Democrats maintain that they cannot give final support unless strict ethical regulations to prevent conflicts of interest for public officials are included, which is becoming a key factor weakening the bill's momentum.

Key Components of the CLARITY Act

The CLARITY Act, designated as H.R. 3633, is a complex of several legal mechanisms aimed at establishing 'rules of the road' for the digital asset market. The bill's core focus is on clarifying the jurisdiction of regulatory agencies and providing detailed guidelines for stablecoin issuance.

• Digital Asset Market Clarity Act: Establishes market structure and specifies the division of roles between regulatory agencies.
• Lummis-Gillibrand Responsible Innovation Act: Establishes federal standards for the issuance and operation of stablecoins.
• Anti-CBDC Surveillance State Act: Prevents government surveillance of personal financial data through digital currencies.
• Expedited Registration Process: Simplifies registration procedures so that cryptocurrency-related companies can operate legally within the institutional framework.

Representative Alsobrooks, who voted in favor in the committee, drew a line, stating that her vote was merely to assist procedural progress and did not guarantee final approval on the floor. This implies that the support base within the Democratic Party is very fragile, and if ethical issues are not resolved, a large number of defecting votes could occur on the floor. Representative Gallego, as the ranking member of the Digital Assets Subcommittee, also agrees with the necessity of the bill but maintains that further negotiations on detailed provisions are needed.

As legislative uncertainty persists, the cryptocurrency market is also reacting sensitively. On May 15, 2026, the price of Bitcoin plummeted below $79,000, marking its lowest level in May. This is analyzed as a result of rising U.S. Treasury yields, concerns over Fed interest rate hikes, and sell-offs triggered by disappointment over the delay of the CLARITY Act. The following chart visually demonstrates the recent price volatility of Bitcoin.

The bill was originally planned to reach an informal agreement by April 25, but it missed the deadline due to issues regarding ethics regulations and the treatment of stablecoin interest yields. Currently, prediction markets estimate the final passage probability of the bill at around 50%, a 'coin toss' level, and major analytical firms like Galaxy also view the success of the legislation as uncertain.

In conclusion, additional cooperation from the Democratic Party is essential for the CLARITY Act to pass the Senate floor. However, as the controversy over Trump's 'self-dealing' intensifies as a political issue, legislative attempts to secure clarity in the digital asset market are signaling another arduous journey. The industry is watching closely to see if a dramatic compromise on ethics provisions will be reached before the floor vote.