Seven Senate Democrats have blocked the CLARITY Act over ethics concerns tied to Donald Trump's crypto holdings, and three Democrats critical of crypto — Elizabeth Warren, Maxine Waters and Shontel Brown — are positioned to control the congressional committees that decide digital-asset policy next.
Democrats could take over crypto's key committees
Representative Maxine Waters stands in line to return to the helm of the House Financial Services Committee should Democrats flip the House, with Representative Shontel Brown positioned to lead the House Agriculture Committee. Kalshi bettors price an 84% likelihood of a Democratic House majority, though the Senate odds sit closer to a coin toss.
A Senate flip would let Senator Elizabeth Warren ascend to lead the Senate Banking Committee, with Senator Michael Bennet next in line on the Senate Agriculture Committee. All four lawmakers — Waters, Brown, Warren and Bennet — carry matching "F" ratings from the advocacy group Stand With Crypto.
Waters has called the pending market-structure bill the "Calamity Act," saying it would "create giant loopholes in our federal financial laws that would put consumers and investors at risk." She also staged a walk-out of a committee hearing on the bill.
The CLARITY Act stalls over ethics language
The pressure builds on an existing stalemate. Seven Senate Democrats, including Maryland's Angela Alsobrooks, have formally rejected the revised text of the CLARITY Act, the market-structure bill that cleared the House on July 17, 2025, by a 294-134 vote. Then, the White House tried to revise the bill's ethics language to satisfy Democratic anti-corruption demands, but Senate Democrats rejected the change, and Congress adjourned without scheduling a vote.
Their objection centers on officials, including President Trump and his family, holding financial stakes in stablecoin and other digital-asset ventures while shaping the rules governing them. On the House side, Waters and other Democrats introduced the Stop Trump in Crypto Act to limit officials' involvement in digital-asset projects.
Industry says crypto policy is bipartisan
Digital Chamber CEO Cody Carbone argued crypto policy should remain "non-partisan", saying his group works with likely committee chairs regardless of party. Still, if the CLARITY Act fails to advance during its narrow Senate window in September, the industry could face a Congress led by some of its most consistent critics.
Sources: CoinDesk, Crypto Briefing
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