Senate Banking Committee ranking member Elizabeth Warren will criticize the cryptocurrency market structure bill known as the Clarity Act in a speech scheduled for Monday night, as the Senate prepares for a preliminary vote on the legislation Tuesday afternoon. Warren, a Democrat from Massachusetts, shared her prepared remarks with CNBC, where she will describe a new ethics provision in the bill, which has received support from President Donald Trump, as a "weak fig leaf that will do nothing to stop him from making his next $1.4 billion in crypto profits."
Republicans supporting the Clarity Act are hoping to gain support from some Democrats, as at least 60 affirmative votes are required for the bill to advance past Tuesday's vote. GOP leaders of the crypto bill released updated legislative language on Sunday, claiming it includes new ethics provisions sought by Democrats. The new provision would empower state attorneys general to enforce the ethics rules, which would prevent the U.S. president and other senior government officials from issuing digital assets. The ethics language has been a significant point of contention in the Clarity Act debate.
Warren argues that the proposed new ethics rules are merely a distraction. She plans to state, "First, it makes sure the law could never be enforced against Donald Trump because it gives his political appointees the power to turn off enforcement of these ethics provisions. Second, it contains major loopholes designed to allow President Trump to keep earning billions of dollars from his crypto businesses, including World Liberty Financial and his new bank. Yes, you heard that right."
Warren will also seek unanimous consent to pass a bill called the "Ending Presidential Corruption in Banking Act," which would prohibit various banking applications from being approved for the president, vice president, their spouses or children, members of Congress, presidentially appointed executive branch officials, or special government employees. This measure is expected to face challenges in the Republican-controlled Senate.
Trump's family crypto venture, World Liberty Financial, in which he is listed as a co-founder emeritus alongside Special Envoy Steve Witkoff and his sons, acquired a bank charter earlier this year. Warren will assert that the bank charter would "supercharge the growth of USD1, increase its interconnectedness with the U.S. financial system, and, as a result, drive even greater profits for President Trump and his family."
She will also caution that passing the Clarity Act could have similar implications, claiming that Senate Republicans are "intent on furthering President Trump's corruption." Warren will question the Senate's priorities, stating, "Look no further than the Senate's first order of business after August recess. Is it a bill to make life more affordable for American families? No. Is it a bill to end Trump's dangerous War in Iran? No. It's a bill that would juice the value of President Trump's crypto empire, and reward the crypto billionaires who have facilitated his corruption."
Warren will emphasize that the latest ethics provision contains glaring loopholes and does not apply to Donald Trump's new bank.