Crypto critic Ben McKenzie has urged Congress to block the CLARITY Act due to President Trump’s financial ties to the digital asset industry.
McKenzie joined Senate Democrats like Richard Blumenthal and Chris Van Hollen at a Capitol Hill anti-corruption forum on Monday to lobby against the bill.
Trump Crypto Concerns
The actor argued that lawmakers could not oppose “Trump’s crypto corruption” while supporting the CLARITY Act, saying the legislation would only allow it to continue. He urged Democrats to reject the bill, warning that only a handful of votes could be enough for it to go through.
His comments come as Democrats continue to push for stronger ethics rules, consumer protections and national security safeguards in the bill. While Republicans added language banning the president and other public officials from issuing or sponsoring cryptocurrencies, Blumenthal believes the updated version still leaves loopholes that could allow Trump to profit from his crypto ventures.
“Donald Trump made $2 billion last year, and $1.4 billion of his income last year consists of cryptocurrency profits that exploit weaknesses in the current law,” he said.
He explained that the current CLARITY Act does not require Trump to divest his crypto holdings and that its ethics provisions would expire in 2029, leaving enforcement to the Department of Justice, which, according to him, would not be enough.
As for what they are doing to stop this, the Democrats said they plan on using their bargaining power to push for changes to the legislation before it comes up for a vote. This is especially important because the Senate will need at least 60 votes to advance the legislation.
New York AG Warns Legislation Could Weaken Oversight
On the same day, New York Attorney General Letitia James warned that the CLARITY Act could weaken state enforcement against crypto fraud, saying stronger regulations are needed to protect investors.
The proposal, she said, would limit the state’s ability to hold digital asset platforms accountable even as crypto scams continue to cost Americans billions of dollars a year.
James finished by saying that strict rules are needed to maintain trust in the financial markets, and warned that without sufficient laws and oversight, there would be financial crises. She therefore urged Congress to strengthen investor protections and safeguard the economy and national security.
Meanwhile, Senate Majority Leader John Thune has put the CLARITY Act on hold for now as the Senate focuses on confirming government nominees and debating a Russia sanctions bill. This now pushes the crypto bill off the pre-recess agenda, with September now the earliest it is expected to return for consideration.
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Source: https://cryptopotato.com/oc-actor-ben-mckenzie-urges-congress-to-block-clarity-act-over-trump-ties/
