Democrats, during the June 6, 2025 hearing on the digital asset market structure bill, commonly referred to as the Clarity Act, raised concerns, along with Democrat-selected witnesses, about the Trump family's involvement in cryptocurrency ventures and potential loopholes in the bill that could enable traditional financial firms to circumvent existing securities regulations

Event date

June 6, 2025

Quotes that support claims

The committee held a "minority day" hearing — meaning the witnesses were primarily picked by the Democrats, the current minority party in the House — on Friday, letting lawmakers ask questions more targeted on concerns they have with the Digital Asset Market Clarity Act

The debate around the crypto market structure bill, expected to head for a vote on June 10, has been partly shadowed by calls for provisions to stop Trump from potentially using the legislation to his personal benefit.

Fischer said that by carving crypto out of U.S. securities laws that have existed since the 1930s, the CLARITY Act would incentivize traditional financial institutions to “shoehorn” routine functions like capital raising onto blockchain networks as a means of dodging regulation and lowering costs.

Fischer argued that few if any token issuers will ever engage with that more rigorous process, given that the CLARITY Act, in her opinion, already offers so many loopholes a token issuer could take advantage of instead of conceding that their offering represents an investment contract.

Himes, a yes vote on last year's predecessor to the Clarity Act — the Financial Innovation and Technology for the 21st Century Act, or FIT21 — said some of the provisions in the new effort may allow for a carveout that can be abused by certain types of issuers under Securities and Exchange Commission regulations.

Democratic leaders like Financial Services Committee Ranking Member Maxine Waters (D-CA) focused their critiques mainly on the refusal of Republicans to include language in the legislation that would bar President Donald Trump from engaging in his numerous, lucrative crypto ventures while in office.

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Week 23 of 2025