Clarity Act Update for XRP Holders: How This Trump Action Stalls Passage in the Senate
Abs Nassif, host of the Good Evening Crypto podcast, has shared a bombshell report on X revealing why the CLARITY Act is stalled in the Senate.
Citing a Politico report, he noted that a new draft of the bill is expected today. However, Senate Democrats still oppose the draft, and President Donald Trump bears the blame for their stance.
The Democrats are opposing the CLARITY Act over missing ethics that would prevent the President, his family, and many members of the executive branch from holding or engaging with cryptocurrencies.
CLARITY ACT UPDATE! 🇺🇸
Politico reports: A new draft drops today, but Senate Democrats largely oppose it—mainly because it lacks strong ethics rules blocking politicians (incl. Trump family) from profiting off crypto.
Without their votes, the bill needs 60 to pass the Senate…
— Good Evening Crypto (@AbsGEC) July 16, 2026
Trump’s Actions: The Major Issue
Before Trump took office in January 2025, he launched the $TRUMP meme coin. A few days later, First Lady Melania Trump launched her own $MELANIA. Both tokens generated enormous controversy.
The $TRUMP coin alone produced over $635 million in licensing income for Trump during 2025, according to a 927-page financial disclosure released by the Office of Government Ethics on July 1. Total crypto-related income for the year reached approximately $1.4 billion.
Democrats in the Senate pointed to those figures and refused to move forward without enforceable ethics language in the bill. They want legislation that bars the president, vice president, members of Congress, and their families from holding financial interests in or profiting from crypto assets while in office.
The Ethics Fight Blocking a Senate Vote
The Senate Banking Committee voted 13-11 in May to reject a Democratic ethics amendment sponsored by Senator Chris Van Hollen. The vote split along party lines. The CLARITY Act advanced through the committee on a 15-9 vote without the ethics provision.
However, the problem did not go away. The bill needs 60 votes to advance in the full Senate. That requires Democratic support. Senator Kirsten Gillibrand stated publicly that enforceable ethics language is a prerequisite for her vote. The White House has signaled it will not accept language targeting the president’s personal holdings.
Senate Democrats have also introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, attempting to bar officials and their families from issuing or endorsing digital assets. However, Republican majorities in both chambers make its passage unlikely.
The XRP Community Speaks
Reactions from the community varied in tone but agreed on the severity of the situation. One community member argued that the Democrats are letting their hatred for Trump threaten national security and U.S. economic dominance. Another predicted the issue will carry into the November midterm elections, expressing doubt the bill will pass in 2026.
A third placed the blame squarely on Trump, arguing that his personal financial interests in crypto have directly cost the community the legislation it needs.
The Stakes for XRP Holders
The CLARITY Act represents the most significant crypto market legislation in U.S. history. Its passage would provide regulatory clarity across digital assets and cement XRP’s status as a commodity. Every week that passes delays the legal certainty the market needs. The window to pass this legislation in 2026 is narrowing fast.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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