Senator Elizabeth Warren has opposed the latest Senate version of the Digital Asset Market CLARITY Act, warning that the crypto market structure bill fails to address conflicts of interest tied to President Donald Trump and his family’s digital asset ventures.
Warren, the ranking Democrat on the Senate Banking, Housing, and Urban Affairs Committee, released her statement after the committee’s Republican majority published the latest text of the bill ahead of a scheduled markup on Thursday.
The CLARITY Act is designed to create a federal framework for digital asset markets, including rules for token classification, crypto trading platforms, stablecoins, decentralized finance and law enforcement authority. The bill is one of the crypto industry’s top legislative priorities in 2026.
Warren said the draft puts investors, national security and the financial system at risk. She also argued that the bill does not include protections to prevent elected officials or their families from profiting from crypto-related businesses.
She said President Trump and his family have gained at least $1.4 billion from crypto deals during his current term and said committee members should not support a bill that does not address those conflicts.
Warren Criticizes Ethics Gap in Crypto Bill
The latest CLARITY Act draft does not contain broad conflict-of-interest language covering government officials and crypto ventures. That omission has become one of the main objections among Democrats as the bill moves toward committee consideration.
Warren said the legislation should include safeguards preventing political figures from benefiting from crypto businesses while shaping digital asset rules. Her position adds pressure to Senate negotiators who are trying to keep the bill moving while avoiding provisions that the White House says unfairly target the president.
White House crypto adviser Patrick Witt responded to Warren’s statement on X, criticizing what he described as a rapid judgment of the 300-page bill. His comment reflected the administration’s support for the legislation and its view that ethics language should apply broadly rather than focus on a specific officeholder.
The ethics fight remains unresolved because some conflict-of-interest rules may fall outside the Senate Banking Committee’s direct jurisdiction. Lawmakers could attempt to add that language later if the bill advances beyond committee.
Several Democrats have said stronger ethics provisions are needed before they support a final version. The bill would eventually need at least some Democratic support to reach the 60 votes required in the full Senate.
Labor Groups Warn on Retirement Accounts
Warren’s opposition comes as several large labor organizations also urge senators to vote against the bill. The AFL-CIO, Service Employees International Union, American Federation of Teachers, National Education Association and AFSCME sent letters and emails to Senate Banking Committee members ahead of Thursday’s vote.
The unions said the bill could expose workers’ retirement plans, public pensions and savings accounts to digital asset volatility. They argued that weaker crypto rules could allow the industry to take larger risks while shifting losses to retirees and working households.
The AFL-CIO separately warned that placing crypto and digital assets deeper into the real economy without stronger regulation could benefit issuers and platforms at the expense of workers.
The labor groups’ position adds another layer of resistance to the bill. Their concerns center on retirement security, pension exposure and whether digital assets should become more connected to mainstream financial products before stricter rules are in place.
Crypto supporters argue that the CLARITY Act would reduce uncertainty by placing digital asset markets under clearer federal rules. Critics say the current text still leaves gaps in consumer protection, ethics standards and financial safeguards.
Banks and Crypto Firms Split Over Stablecoin Rewards
Traditional banks are also pushing for changes to the CLARITY Act, especially around stablecoin rewards. The American Bankers Association has urged bank executives to contact lawmakers and press for stronger language before the markup.
ABA President and CEO Rob Nichols said the current draft has improved but still does not fully prevent crypto firms from offering interest-like rewards on payment stablecoins. He warned that those programs could encourage deposits to leave banks for stablecoin products.
The current text restricts passive yield tied only to holding payment stablecoins or balances that function like interest-bearing bank deposits. Crypto firms have supported room for rewards linked to active use, payments and customer programs.
Coinbase has backed the revised compromise after raising concerns about earlier language. Banking groups continue to argue that the compromise leaves too much flexibility for crypto platforms.
Supporters of the bill include Strategy Executive Chairman Michael Saylor, who said the CLARITY Act could open the next phase of digital capital, digital credit and digital equity markets. He argued that the legislation would support institutional validation for Bitcoin and related financial products.
The Senate Banking Committee is scheduled to mark up and vote on the bill Thursday. If approved, the CLARITY Act would still need to move through the full Senate and be reconciled with related legislation before reaching the president’s desk.
