Blumenthal Blasts “Trump’s Crypto Corruption,” Calls For Clearer Clarity Act

by Dereen Shirnekhi

While en route to Washington D.C. Monday morning, U.S. Sen. Richard Blumenthal stopped in New Haven to warn that a bill before Congress that would appear to regulate the cryptocurrency market could in fact fall short when it comes to protecting crypto buyers.

Blumenthal made that point at a Monday morning press conference outside the federal courthouse at 141 Church St.

The presser took place ahead of a forum he planned to host in D.C. on Monday afternoon. That forum, entitled “Trump’s Crypto Corruption,” will convene crypto experts and consumers to make the case against the current version of the Clarity Act.

The Clarity Act, which is backed by the cryptocurrency industry, provides a regulatory framework for digital assets. Republicans are racing to pass the bill before August recess. Democrats have expressed concern ever since President Donald Trump disclosed in June earning over $2 billion over the course of 2025 — including $1.4 billion from his family’s cryptocurrency business.

Democrats have called for stricter language with clear ethics standards and approved protections for consumers and national security. Republicans released a new version of the bill that would make it illegal for the president and other public officials to issue or sponsor a cryptocurrency. Democrats say the revised bill still misses the mark.

On Monday morning, Blumenthal made the case that the bill doesn’t do enough to prevent Trump from getting richer off of crypto. Specifically, he pointed to “pump and dump” schemes, which he argues Trump took part in when the value of the $TRUMP memecoin was inflated and subsequently crashed. Trump and his family profited from transaction fees every time the digital currency was traded, but the majority of investors ultimately lost money.

The investors, Blumenthal said, lost a total of $3.8 billion.

“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,” Blumenthal said. “That’s why we need reform, because people like Donald Trump are taking advantage of loopholes and weaknesses in the current law to profit at the expense of everyday Americans.”

Blumenthal said the current Clarity Act would not require Trump to divest from cryptocurrency. The ethics provision included would also sunset in 2029, and it would leave the power of enforcement to the Department of Justice.

“The Department of Justice has become the Department of Injustice,” Blumenthal said. He called on state attorneys general to be permitted to serve as enforcement agents.

Blumenthal also pointed to the millions of dollars invested by the crypto industry to lobby for the legislation, and acknowledged the industry holds “political weight.”

When asked how he and his Democratic colleagues plan to fight for an improved version of the Clarity Act, Blumenthal said, “Republicans know they need our votes passed along. I’m hoping that we can use that bargaining power in the next weeks because Republicans want to get this passed before the election.”