WLFI slides toward $0.056 as ethics clash clouds CLARITY Act rally

WLFI's sell-off pressure is undermining the broader crypto rally tied to the CLARITY Act's Senate progress.

World Liberty Financial's WLFI token fell toward $0.0563 as a dispute over ethics rules in the CLARITY Act threatened to derail the crypto regulatory bill's path through the US Senate.

"The ethics provisions are a step forward, but they don't go far enough to address conflicts of interest when public officials can profit from digital asset projects," seven Senate Democrats said in a joint statement opposing the current draft. The group includes Senators Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner and Raphael Warnock.

The 616-page Digital Asset Market Clarity Act, which cleared the House and the Senate Banking Committee on a 15-9 vote, needs 60 votes to pass the full Senate. Senate Majority Leader John Thune plans to bring the bill to the floor next week. WLFI, the governance token for the Trump family-backed DeFi platform on Ethereum, has lost more than 87% from its all-time high of $0.46 set on Sept. 1, 2025, according to CoinGecko data.

The clash pits the market's optimism around a federal crypto framework against growing scrutiny of Trump-linked digital assets. WLFI's presale raised more than $550 million from 85,000 investors since October 2024, but the token now trades at a market cap of $1.8 billion — a fraction of its peak valuation.

The ethics gap that Democrats want closed

The CLARITY Act's new ethics section bars the president, vice president, lawmakers and their spouses from issuing or sponsoring a digital asset in exchange for consideration, with the restriction set to expire on Jan. 20, 2029. But Senator Alsobrooks called the enforcement mechanism "wild and unserious and stone crazy," arguing that relying solely on the Justice Department to police violations is insufficient. She wants state attorneys general empowered to act if the DOJ does not.

The banking industry is also pushing back. Six trade groups led by the American Bankers Association said the latest version "still puts at risk the local lending that drives economic activity in the US."

WLFI's on-chain picture

WLFI's 14-day relative strength index sits at 46.68, neutral territory, while the 50-day simple moving average at $0.05838 and the 200-day SMA at $0.09495 both point to sustained downward momentum. The Fear & Greed Index reads 27, signaling fear among holders. Trading volume over the past 24 hours reached $116 million, down 18% from the prior day, according to CoinGecko.

The token's circulating supply stands at 24.66 billion tokens, with a market cap of $1.8 billion. WLFI hit an all-time low of $0.051 on May 2, 2026, meaning the current price sits just 10% above that floor.

For the CLARITY Act, the next milestone is the Senate floor vote, where Thune needs to secure at least seven Democratic votes to reach the 60-vote threshold. If the bill stalls, the crypto industry loses its best chance this year at a federal regulatory framework that would divide oversight between the SEC and the CFTC.

This article is for informational purposes only and does not constitute investment advice.