TLDR
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Trump’s crypto ventures stall progress on key U.S. crypto bill amid conflict-of-interest claims.
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Clarity Act faces backlash as Democrats cite Trump’s memecoin and wallet as ethical red flags.
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Lawmakers clash over crypto regulation as Trump’s digital asset ties dominate Capitol Hill talks.
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Crypto bill stalls after Trump’s Solana wallet project raises concerns of public-private overlap.
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Trump’s growing crypto presence sparks bipartisan gridlock on U.S. crypto market regulation bill.
Efforts to advance the Digital Asset Market Clarity Act stalled as lawmakers raised concerns about President Donald Trump’s growing crypto ventures. The bill, introduced to clarify U.S. crypto market rules, faced fresh resistance amid claims of conflict of interest. Democratic lawmakers argued that Trump’s active role in digital assets could compromise the bill’s integrity.
Clarity Act Draws Criticism Over Timing and Content
House Republicans introduced the Clarity Act to create a legal framework for regulating cryptocurrencies as either securities or commodities. The bill also mandates clearer responsibilities for the SEC and CFTC and includes investor protection measures. Despite this, Democrats claimed the legislation was rushed and lacked provisions for conflicts of interest.
Some Democrats expressed frustration that the bill overlooked crucial consumer protections and failed to address illicit financial risks tied to crypto. They said the timeline for review was insufficient given the bill’s 236 pages and complex content. In response, Republicans highlighted global competition and stressed the urgency of advancing crypto laws to prevent innovation flight.
Lawmakers also discussed the bill’s impact on existing securities laws, raising concerns about loopholes for firms to avoid compliance. A witness warned that weakening protections in traditional markets could harm investors. Still, the bill’s sponsors argued that it strengthens oversight compared to past proposals.
Trump’s Direct Crypto Involvement Sparks Tensions
As discussions progressed, attention shifted to Trump’s expanding influence in the crypto industry, including a memecoin and a new digital wallet. Democrats linked these ventures to ethical concerns, especially given the president’s policy influence on crypto regulation. They claimed his family gained billions through related assets during ongoing debates on crypto law.
The wallet project, tied to Magic Eden supports Trump’s Solana-based meme coin and is seen as part of a broader branding strategy. Lawmakers argued this initiative blurred the line between public service and private gain. Additionally, past events such as exclusive dinners for top token holders further fueled accusations of pay-to-play politics.
Democrats called for stronger anti-corruption provisions in the bill. They proposed amendments for conflict-of-interest rules and enhanced consumer protections. Without these, many Democrats stated they would withdraw support from the legislation entirely.
Committee Hearings Face Setbacks Amid Political Divide
Tensions remained high as both the House Financial Services and Agriculture Committees reviewed the bill in back-to-back hearings. Witnesses included former SEC and CFTC leaders who debated how to define decentralization and implement anti-money laundering safeguards. However, Trump’s activities dominated the sessions, limiting policy discussion.
Democratic members proposed holding a “Minority Day Hearing” to reassess the bill and its relationship with Trump’s digital asset interests. They stressed the need to evaluate new developments, including Trump’s digital wallet launch and the president’s public promotion of personal crypto products. This push delayed consensus on the bill’s markup timeline.
Meanwhile, Senate leaders have also indicated that a market structure bill may be introduced soon, although bipartisan alignment remains uncertain. The Senate’s higher threshold for passage means Democrats must remain engaged for any crypto bill to succeed. Despite momentum, the Trump factor continues to complicate the legislative path ahead
