A key US crypto regulation bill faces last-minute hurdles as President Trump's conflicts of interest emerge as a central issue. The Clarity Act, which aims to establish a regulatory framework for digital assets, is stalled over provisions restricting crypto holdings by top government officials.
White House intervention sought
Senior White House officials are set to meet with senators on Thursday to break the deadlock. The main sticking point is a Democratic proposal to limit crypto investments and business involvement by the president, vice president and lawmakers. The bill is targeting passage by 2026 but is caught in the final stretch of the Senate calendar.
At the heart of the dispute is Trump himself, who disclosed earning over $1 billion from the crypto industry in 2025. Some Democrats have labeled this a corruption risk and vowed to oppose the bill unless Trump's crypto ties are addressed. Senators Ruben Gallego and Angela Alsobrooks, who backed the bill in committee, insist ethics provisions must be included for final passage.
Limited time before recess
Chief of Staff Susie Wiles may join the negotiations as the White House steps in directly. The bill's draft, once near completion, could see its release delayed. Industry observers believe the legislation would pass smoothly once the ethics clause is resolved, but Trump's willingness to accept tighter rules remains uncertain.
Time is running short. The Senate enters a long summer recess after the first week of August, followed by the midterm election season. Majority Leader John Thune has signaled he may bring the bill to the floor by month's end regardless of final wording, raising the possibility of procedural brinkmanship. The Clarity Act is seen as a landmark for US crypto regulation, but political conflicts—especially involving Trump—keep its fate uncertain.