Senators Seek SEC Probe of Trump Memecoin as Crypto Bill Stalls

The U.S. Senate is considering the CLARITY Act, a digital asset market structure bill that would define the regulatory framework for cryptocurrencies and is viewed as the culmination of years of industry lobbying. President Donald Trump’s family is deeply involved in crypto ventures, including World Liberty Financial and the $TRUMP memecoin. Democratic lawmakers question whether Trump’s substantial crypto earnings could influence the direction of the legislation, making presidential conflicts of interest the biggest political issue ahead of the vote.

Five Democratic senators jointly called on relevant Senate committees to hold hearings into the national security and conflict-of-interest risks surrounding Trump’s crypto holdings. Senator Elizabeth Warren said the Trump family had made about $1.2 billion from crypto ventures and pushed an ethics amendment that would prohibit federal officials from using digital assets for private gain. The amendment has brought bipartisan negotiations over the CLARITY Act to a standstill, while some Democratic senators have publicly opposed the measure and called it a “corrupt” bill.

The U.S. Congress is advancing the CLARITY Act to define the respective authority of the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets. Disputes including whether stablecoins should be treated as deposits have pitted the banking and crypto industries against each other, with implications for the direction of U.S. crypto regulation.

Trump recently told holders of the $TRUMP memecoin at his Mar-a-Lago estate in Florida that he would prevent the banking industry from obstructing the CLARITY Act and would build a regulatory framework that would be difficult to overturn. The second dinner for major holders drew 297 attendees, including boxing champion Mike Tyson and Tether CEO Paolo Ardoino. The $TRUMP token has fallen 96% from its peak.