US crypto law risks running aground over debate about Trump business interests
A major bill intended to clarify cryptocurrency regulation in the United States risks being overshadowed by President Donald Trump’s business interests, according to a report in the New York Times. The so‑called Clarity Act could still be put to a vote in the Senate this summer and is backed by Republicans, a section of the Democratic Party and the crypto industry. Even so, a debate over ethical rules is causing division.
The trigger is Trump’s financial disclosure from this June, which shows that last year he received around $1.4 billion in income from cryptocurrencies. Those proceeds came from various crypto projects set up by Trump and his family.
To prevent conflicts of interest, Democratic senators want the Clarity Act to explicitly prohibit public officials from issuing or selling digital currencies. Republicans on Wednesday presented a revised version of the bill stating that the president and other US officials may not issue or sponsor cryptocurrencies while they are in office.
According to Democrats and various civil-society organisations, however, that provision does not go far enough. They point out that the proposed rules do not stop Trump from continuing to profit from existing crypto projects, including his memecoin and other ventures that were launched before he took office as president.
The crypto sector regards the Clarity Act as an important piece of legislation. Under President Joe Biden, the US Securities and Exchange Commission (SEC) took a tough line against crypto companies and argued that many digital coins fell under the same rules as securities such as shares. The Trump administration has largely reversed that course. The Clarity Act is intended to enshrine this new approach in law and give companies greater clarity about regulatory oversight.
Critics have raised doubts about this. In addition to concerns about the limited powers of the envisaged regulator, they believe the bill does not contain sufficient safeguards against conflicts of interest among public officials.
The crypto lobby has invested heavily in support for the bill in recent years. During the 2024 elections, pro‑crypto political action groups spent more than $130 million to back candidates who take a positive view of the sector. Last year, the Genius Act, which sets rules for stablecoins, was already passed by Congress.
The Clarity Act is now awaiting consideration by the full Senate. Republicans there have only a narrow majority, meaning they are dependent on support from Democratic senators. Because of the debate over the ethical provisions, it is uncertain whether the bill will secure sufficiently broad backing before Congress goes into its summer recess.
According to Senate Majority Leader John Thune, it is virtually ruled out that the Senate will consider the proposal before 7 August, a deadline that was seen as important for being able to pass the law this year.
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