CLARITY Act in Jeopardy: Trump’s Involvement Threatens the Most Crucial U.S. Crypto Regulation

Moon5labs

The year 2025 brought major legislative progress to the United States, most notably with the GENIUS Act, which established rules for stablecoins. Now, a new pivotal regulation is on the table — the CLARITY Act, aimed at finally bringing clear rules to the crypto markets. But the process is hitting turbulence — and analysts warn that one man could slow it down: Donald Trump.

CLARITY Act May Be Delayed Until 2027 According to a recent report from investment bank TD Cowen, the approval of the CLARITY Act may face significant delays. Executive Director Jaret Seiberg stated that while the bill might make some progress this year, final approval likely won’t happen before 2027 — or even as late as 2029. The reason? Political uncertainty and Democratic reluctance to rush through the bill’s key provisions, especially those addressing conflicts of interest, which would restrict top U.S. officials and their families from participating in crypto ventures. And this is where Donald Trump comes in. The report notes that his — and his family’s — involvement in crypto-related projects has become a politically sensitive issue that is hindering legislative momentum.

Elections Seen as Both Obstacle and Opportunity Democrats are hoping to regain control of the House of Representatives in the November 2026 midterm elections. As a result, they appear willing to wait with the bill’s final passage in order to strengthen their negotiating position. TD Cowen suggests a compromise solution: delaying the conflict-of-interest clause by three years, until after Trump’s current term ends in 2029. This could defuse political tensions while enabling the CLARITY Act to move forward.

Key Date: January 15, 2026 That’s when the next hearing on the CLARITY Act is scheduled. The bill seeks to introduce a clear regulatory framework for digital assets in the U.S., dividing responsibilities between the SEC and CFTC. It also proposes conditions under which some cryptocurrencies could be exempt from the registration requirements of the 1933 Securities Act.

#CryptoRegulation , #TRUMP , #USPolitics , #DigitalAssets , #SEC

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