Crypto Lobbying and Regulatory Setbacks Under Trump
New York — For years, the crypto industry has invested hundreds of billions lobbying for regulation that would integrate digital assets into traditional finance. Following President Donald Trump’s stance shift on crypto in 2024, supporters hoped for a resolution to their regulatory uncertainty.
However, that optimism faced a setback when Republican senators could not pass the industry’s key legislation, the Clarity Act, largely due to complications stemming from Trump’s own financial interests in the crypto space.
Trump has reportedly earned over $1 billion from various crypto ventures launched shortly before he assumed office last year.
Many Democratic lawmakers, including Senator Elizabeth Warren, opposed the Clarity Act, arguing it inadequately addressed ethical concerns regarding public officials trading cryptocurrency. Warren stated, “This crypto bill says, ‘Have at it, Mr. President.’ … That’s just fundamentally wrong. We need crypto regulation, and part of it should be to say that no one around here who has something to do with setting crypto policy can buy, sell or trade crypto.”
Supporters of the bill defended it, claiming that critics shifted their demands post-negotiation. Senate Majority Leader John Thune remarked that the Democrats’ expectations were never met even after the introduction of revised ethics provisions.
Additionally, Sen. Ruben Gallego criticized Republicans for abruptly ending negotiations and forcing a vote, suggesting they were not committed to bipartisan discussions.
The failure to pass the Clarity Act is the latest in a series of disappointments for the crypto sector under Trump’s second presidency. Throughout the past two years, the White House has embraced the crypto industry, appointing friendly officials across financial regulatory agencies and proposing initiatives such as a strategic bitcoin reserve to stabilize token values.
Despite these efforts, Bitcoin has struggled to maintain momentum. Following the Clarity Act news, Bitcoin fell 4% to around $75,700, while trading platform Coinbase and stablecoin issuer Circle dropped 10% and 11% respectively.
While some crypto leaders expressed frustration over the recent vote, many industry participants remained optimistic. David Mercer, CEO of LMAX Group, emphasized the ongoing commitment of major banks and asset managers to develop digital asset infrastructure, insisting that regulatory clarity will eventually be achieved.
CNN’s Matt Egan and Morgan Rimmer contributed to this article.
