Sen. Elizabeth Warren says she wants a crypto bill, but the Clarity Act just isn't it

Sen. Elizabeth Warren, who has repeatedly called for stronger cryptocurrency legislation to combat illicit finance and protect investors, says she remains determined to get a bill signed into law — even if she doesn’t support the current Clarity Act.

The Massachusetts Democrat told reporters Tuesday that the Clarity Act represents Washington’s "first chance for meaningful crypto regulation." But she said any bill must include rules governing public officials’ crypto investments, protect national security and consumers, and strengthen efforts to combat illicit finance and terrorism.

Warren's thoughts on crypto legislation could be pivotal if crypto legislation carries on to the new year. Democrats have a narrow path to taking the Senate in upcoming November elections. Bettors on the prediction market Kalshi give Democrats a slight edge of taking over the Senate at 52%. If so, that could mean Warren would lead the Senate Banking Committee, a pivotal panel when it comes to regulating digital assets.

Asked whether she would take the lead on crypto legislation if she leads the Banking Committee, Warren said she would.

"I'd be happy to sit down with other Democrats, with the Republicans, and with the industry and hammer out a meaningful crypto bill that protects our national security, that protects our economy and that dials back the corruption," she said. "I think we could get that done, but it will require the Republicans' willingness to stand up to Donald Trump — and that's a pretty tall order."

Trump and ethics

Trump's vast crypto wealth has become a major point of contention in trying to get the current crypto bill, the Clarity Act, passed into law. Many Democrats have argued that stricter ethics provisions need to address President Donald Trump's growing crypto wealth, which has grown to hundreds of millions of dollars linked to World Liberty Financial and his TRUMP memecoin. Meanwhile, Republicans have said the bill's language goes far enough.

Current language gives state attorneys general some leeway in enforcing the ethics provisions by allowing them to sue crypto exchanges and the Justice Department, and says that public officials have to divest "significant financial interest" or put those in a blind trust. But Democrats, including Warren, have said that provision is not enforceable given that the Justice Department would decide whether to bring an enforcement action against the president.

On Tuesday, Democrats' counteroffer to Republicans' revised bill text would have broadened ethics restrictions to address Trump's vast crypto wealth, including his children, and required officials with a "very large interest in a crypto company to sell it," not just put it in a blind trust, according to reporting from Politico. But that was shut down by leading Senate Republican Cynthia Lummis.

The Senate is set to vote on the Clarity Act at 2:15 p.m. ET.

Ahead of the vote, Anchorage Digital Head of Policy Kevin Wysocki said he was on Capitol Hill talking to Senate staff ahead of the vote and said it is possible to get the 60 votes needed to get the Clarity Act through its first procedural vote. He noted Democrats' concerns on ethics, but voiced optimism that they could support it. However, if the vote fails, Wysocki said the Senate could try a cloture vote again.

"We'll have to see how it plays out," Wysocki said in an interview with The Block. "Hopefully we don't have to use that. Hopefully we just get it."