We are fighting back to stop them from buying carve outs for industry insiders at the public’s expense.
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So-called Ethics Provision in the CLARITY Act Fails to Prohibit Corruption
By Patrick Woodall, Managing Director for Policy
The long-promised ethics provisions in the CLARITY Act crypto legislation are a fig leaf that don’t cover Trump’s unprecedented crypto corruption or the rampant efforts by crypto billionaires to leverage their power and money to secure favorable legislation.
Senate Republicans unveiled new ethics language that doesn’t pass the laugh test. It fails to cover any of the existing Trump family’s crypto enterprises, excludes his sons who operate the family crypto firms, and allows carve outs that enable Trump-branded crypto to continue to generate profits for Trump.
These weak provisions even expire with Trump’s term in office and prohibit Congress from ever reissuing similar crypto ethics laws (meaning the bill lets crypto billionaires use the same corrupt playbook to try to influence future presidents). The end result is that Trump would never face the music for his family’s multi-billion dollar crypto grift.
Fleeced investors generate Trump’s crypto profits
Trump’s crypto ripoff is eye-popping. Nearly a million people lost $3.8 billion on Trump-branded memecoins. Reuters reported that the Trump family crypto empire raked in $2.3 billion in profits while investors in their sprawling crypto businesses lost $2.3 billion since Trump ran for office in 2024. There is no perfect accounting of the Trump crypto profits, but Forbes reports his net worth reached $6.5 billion in 2026—nearly triple the $2.3 billion he was worth in 2024 before he took office— “largely by cashing in on crypto.”
It’s more than just the Trump family coffers. It’s about eroding democracy through crypto spending
Crypto billionaires and their firms are using their money, power, and access to curry favors and favorable treatment from the Trump administration. High-profile crypto investors plowed $148 million into Trump’s memecoin to win a contest to attend a Trump banquet. The Trump administration has dropped crypto enforcement cases and pardoned crypto criminals with ties to the Trump crypto businesses. A member of the royal family of the United Arab Emirates directed a $500 million investment into the Trump family’s World Liberty Financial crypto firm, raising ethical and national security concerns.
And it’s preposterous to think that the Trump regulators and law enforcement agencies will enforce any rules against the Trump family crypto businesses—or any crypto firm that does business with the Trump crypto empire. Trump has appointed crypto industry insiders to key positions of power who are rolling back protections, leveraging special treatment, and giving a green light to crypto predation. The CLARITY Act is a giveaway to the industry that will harm crypto investors and everyone else—even if they don’t buy crypto.
CLARITY enriches the crypto billionaires pushing anti-democratic ideas
The crypto billionaires that have plowed money into right-wing causes and Trump vanity projects are pushing the CLARITY Act because it will make them even richer. The vast majority of U.S. voters worry about crypto’s political power—including three-quarters of Republicans and independents—and crypto’s attempt to craft legislation that is a giveaway to the industry. Many of the biggest crypto billionaires—and biggest beneficiaries of the CLARITY Act—are oligarchs pushing authoritarian ideas and supporting Trump’s efforts to undermine U.S. democratic ideals.
Updates
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Statement: AFR Joins Members of Senate and Allies on Capitol Hill to Call Out Crypto Corruption
I am Ericka Taylor, Co-Executive Director of Americans for Financial Reform, a non-profit formed in the wake of the financial crisis to fight for a financial system that works for everyone. We’re happy to join the members of Congress and our allies here today to share our grave concerns about the CLARITY Act.
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Letters to Congress: AFR, Allies Oppose Tax Giveaways to Crypto Billionaires
Americans for Financial Reform joined a set of consumer and tax advocates, labor unions, and other groups to oppose a series of bills that would create tax loopholes and carveouts for the crypto industry.
AFR in the News
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The Intercept: Trump’s Crypto Corruption Puts Centrist Democrats in Bind
No matter what’s in the legislation, the bill is meaningless if it leaves enforcement to Trump’s own administration, said Mark Hays, the associate director for cryptocurrency and financial technology at Americans for Financial Reform and Demand Progress.
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The Intercept: Sen. Kirsten Gillibrand Wants to Save Crypto — But Trump Windfall Is a Political Obstacle
“If the bill passed, you would probably see a bump for the industry,” said Mark Hays, the associate director for cryptocurrency and financial technology at Americans for Financial Reform and Demand Progress. “So much of crypto rides on sentiment, and if the bill were passed and signed into law, you would likely see an increase…
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American Banker: Will the crypto market structure bill cross the finish line?
“What we see is the [crypto] industry putting a tremendous amount of pressure on politicians in election year to come up with either a bill that locks in the kinds of regulatory changes they would like to see, or failing that, of a vote that sort of they might call it an accountability vote that…
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