Trump's Crypto Empire Blocks Passage of CLARITY Act

The CLARITY Act, a bill aimed at settling how digital assets are regulated in the U.S., has stalled despite clearing the House and a key Senate committee. The main obstacle is not skepticism about crypto but an ethics dispute over President Trump's family crypto interests, estimated to be in the billions of dollars.

The president's holdings span World Liberty Financial, the USD1 stablecoin, and the TRUMP memecoin. Democrats led by Senator Gillibrand argue that a bill regulating digital assets should include ethics language restricting officials from profiting on digital assets. A committee amendment to this effect failed on a party-line vote.

The White House argues that any ethics limits must apply uniformly and not single out the president. The bill's fate now hinges on whether credible ethics language can be agreed upon, rather than crypto policy itself.