Senate Banking Committee advances Clarity Act, rejects ethics ban and DeFi AML
Senate panel blocks crypto-conflict ban for top officials. The Clarity Act clears committee.
On May 14, the Senate Banking Committee voted 13–11 to reject Senator Chris Van Hollen’s ethics amendment that would have barred the president, vice president, and members of Congress from owning or participating in crypto businesses. Van Hollen called the party-line defeat “every Republican voted against it” in a public post on X.
The underlying Digital Asset Market Clarity Act advanced 15–9. Two Democrats joined all 13 Republicans to move the bill forward, per the report published by Coinspeaker.
Senator Bernie Moreno led opposition to the ethics measure. He argued the amendment was procedurally out of order, per the same report on Coinspeaker.
What Van Hollen proposed was twofold. A ban on ownership or participation in crypto businesses while in office. And a public disclosure requirement for any crypto holdings or affiliations. He framed it as closing conflicts as Congress shapes the market’s rules, per his statement.
His evidence focused on the Trump family’s ties to World Liberty Financial and to TRUMP and MELANIA memecoins. He cited reported gains and losses around those projects, including coverage of World Liberty Financial on Coinspeaker. Van Hollen referenced “billions” in investor losses and family profits in his post. Reported figures include more than $620 million in Trump-linked crypto earnings across ventures, though amounts are contested, per Coinspeaker. Moreno called the allegations unproven during markup, per the same report.
A separate Van Hollen amendment to impose direct DeFi AML obligations and developer liability was also voted down, per Coinspeaker.
What changes now for crypto investors
- The Clarity Act moves to the Senate floor after a 15–9 committee vote, per Coinspeaker.
- The bill advances without an ethics bar on official crypto interests, per Van Hollen.
- A DeFi AML mandate and developer liability are not in the committee version, per Coinspeaker.
Photo: Chris Van Hollen
