Crypto Bill Faces Hurdle Over Restrictions on Trump-Linked Investments

The cryptocurrency industry's top legislative priority is facing significant uncertainty, and its prospects may depend on the outcome of a White House meeting between President Donald Trump and Republican senators regarding the Clarity Act, a crypto regulation bill strongly backed by the industry, Joe Light reported for Barron's Daily.

Lawmakers continue negotiating the Clarity Act as debate intensifies over crypto investments by elected officials.

The bill, supported by companies including Coinbase, would establish clearer rules for raising capital through token sales, create additional consumer protections, and shift certain aspects of crypto trading regulation away from the Securities and Exchange Commission (SEC).

Because of Senate procedural rules, the legislation is expected to require support from several Democrats to pass.

One major sticking point is Trump's own financial ties to the cryptocurrency industry.

Some Democrats want the bill to include provisions prohibiting the president and other government officials from holding or profiting from crypto investments while in office.

The White House meeting was expected to help determine what restrictions, if any, Trump would be willing to accept.

Trump's most recent financial disclosure reportedly showed substantial income from crypto-related investments, including World Liberty Financial, which he and members of his family helped establish before the 2024 election.

The White House has maintained that the president's investments do not create a conflict of interest.

Timing has become a critical factor. Congress is scheduled to leave for its August recess, leaving a narrow window for lawmakers to reach a deal before attention shifts to the midterm elections.

Stifel Washington policy strategist Brian Gardner estimated the bill's chances of passing this year at 30%, and said those odds could fall below 20% if the Senate does not approve the legislation before the recess.