Trump's Crypto Fortune Emerges as Key Hurdle for U.S. Digital Asset Bill
A Bloomberg report reveals that former President Donald Trump and his family's estimated $14 billion earnings from cryptocurrency ventures have become the primary obstacle to passing the Clarity Act, a pivotal piece of digital asset regulation in the Senate. The bill, designed to establish a clear regulatory framework, is now mired in partisan debate over its ethics and conflict-of-interest provisions.
Ethics Clause Sparks Bipartisan Standoff
Senate Republicans introduced a new draft this week in an attempt to break a months-long deadlock. However, the section pertaining to ethics rules for public officials was immediately criticized by Democrats and consumer advocacy groups. They argue the provisions are too weak and would fail to prevent Trump or his family from continuing to profit from crypto businesses if the bill becomes law.
Democratic Senator Angela Alsobrooks of Maryland stated that robust ethics rules are “critical” for securing bipartisan support. To advance the bill, Trump's allies would need at least seven Democratic votes—a tall order given the current draft's shortcomings.
Three Core Points of Contention
The debate centers on several key issues:
- Enforcement Authority: The draft grants exclusive enforcement power to the U.S. Department of Justice, effectively sidelining state attorneys general and raising concerns about inadequate oversight.
- Ambiguous Scope: It remains unclear whether the ethics restrictions would cover Trump's indirect crypto holdings through trusts or other complex structures.
- Sunset Provision： Most controversially, the ethics rules are set to automatically expire on January 20, 2029. Critics see this as a tailored loophole for specific political figures.
Additionally, the bill currently does not impose restrictions on the business activities of officials' children, viewed as another significant gap.
Dim Prospects and Industry Pushback
While Democratic Senator Ruben Gallego of Arizona and Republican Senator Thom Tillis of North Carolina are exploring potential compromises, Senate Majority Leader John Thune is pessimistic about the bill's chances before the August recess. He cited tight timing and deep divisions as major hurdles.
Resistance from the traditional banking sector adds another layer of complexity. Banks strongly oppose the bill's stablecoin provisions, fearing a mass exodus of deposits into the crypto ecosystem. Under this multifaceted pressure, prediction market data indicates the probability of the Clarity Act passing this year has fallen to about one-third.
This legislative struggle is not only about the future of crypto regulation but also reflects the profound partisan divides and entangled interests in American politics. Trump's crypto holdings have unexpectedly become a litmus test for the boundaries of U.S. financial regulation and political ethics.