FOR IMMEDIATE RELEASE: July 15, 2025
CONTACT: Jarice Thompson, jarice@ourfinancialsecurity.org
Over 80 Groups Oppose Passage of Dangerous Crypto Deregulation Bill
Groups warn bill could sow seeds of future financial instability
WASHINGTON, D.C.- Today, a group of over 80 national and state civil rights, community, consumer, faith-based, environmental and other organizations urged Members of Congress to oppose passage of the Digital Asset Market Clarity Act of 2025 (H.R. 3633), known as the CLARITY Act. The legislation would legitimize harmful crypto industry practices, exempt large sectors of the industry from all but minimal oversight, create loopholes that would harm mainstream investors, and fail to address growing crypto corruption in the White House.
The letter to Congress can be found here.
The vote on the bill is just one of several industry-driven measures Congress is considering this week, egged on by threats from the crypto industry’s SuperPACs, hollow promises of innovation, and by President Trump’s own direct financial interest.
“Less than two weeks ago, Congressional Republicans gave a tax break to billionaires and now they are at it again with a massive crypto giveaway that rewards billionaires and exposes the rest of us and the financial system to fraud, money laundering, and predation,” said Mark Hays, associate director for crypto and fintech with Americans for Financial Reform and Demand Progress. “The House is rushing to pass CLARITY which is just a deregulatory giveaway that will leave investors to fend for themselves while making crypto billionaires, including the President, even richer.”
The letter signatories fear that despite its name, the bill will create more confusion, chaos, and harm for crypto consumers. The letter notes: “This bill creates a weak regulatory structure for crypto assets, actors, and activities that effectively deregulates much of the crypto sector, either by totally exempting many elements of the industry from any oversight or by replacing existing regulatory standards with weaker protections for customers and markets that could imperil investors and financial stability. The legislation gives the shady practices and endemic fraud in the crypto industry a government imprimatur without adequate guardrails to protect investors and the financial system and unleashes and rewards the administration’s crypto corruption.”
President Trump’s and his family’s crypto ventures loom large in this debate. Trump-affiliated World Liberty Financial would largely be exempt from regulatory oversight if this bill were to pass. Memecoins, such the $TRUMP coin, which has garnered the Trump Organization hundreds of millions of dollars in sales fees even as most investors have lost money on the coin, would also be permanently exempt from regulatory oversight. All told, the bill’s carve outs stand to make the President and his crypto industry allies richer at the expense of ordinary consumers.
“A vote for the CLARITY Act exposes small investors and the financial system to unparalleled risk while enabling the President’s corrupt crypto deals and emboldening the crypto industry to continue with scammy business as usual,” said Hays. “The purported financial innovation behind 1990s-era deregulation triggered the 2008 financial crisis. Now the crypto bros are ignoring the mistakes of the past and setting the stage for a new wave of crypto crime and ultimately a crypto-fueled financial crisis.”
###