How Trump’s crypto winnings cost the industry looser regulation
The crypto industry has just suffered a paradoxical defeat: Its biggest backer, President Donald Trump , inadvertently helped scuttle chances for a major legislative win, thanks to revelations of the riches he and his family have made off of their crypto ventures. The industry is now scrambling to advance its agenda through crypto-friendly regulation instead of legislation. But the prospect of…
The crypto industry has faced an unexpected setback due to President Donald Trump's lucrative crypto ventures, which inadvertently undermined efforts for a major legislative win. The Clarity Act, a bipartisan measure aimed at providing light-touch regulation over crypto assets, fell short of the necessary 60-vote majority in the Senate on September 15, 2026.
This outcome left the industry in uncertainty, as Democratic control of Congress and a potential White House win in 2028 remained uncertain. The bill faced opposition from Coinbase CEO Brian Armstrong, but after his company's withdrawal of support in early 2026, the measure was postponed and eventually failed to gain enough support.
The political backlash against Trump's conflicts of interest surrounding his crypto wealth altered the political calculus, with Senate Democrats fearing they would be seen as enriching Trump if they supported the bill. The industry now faces an uncertain future, as it weighs whether to invest heavily in defeating crypto-skeptical Democrats ahead of the midterms, risking a backlash if Democrats regain control of Congress.
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