Crypto Industry's Looser Regulation Bid Falls Short Amid Trump Family's Crypto Fortunes

The crypto industry has suffered a major setback due to President Donald Trump's involvement in cryptocurrency ventures. Despite initial bipartisan support for the Clarity Act, which aimed to provide light-touch regulation over crypto assets, the bill ultimately died on a procedural vote in September 2026. The legislation would have placed most crypto trading under the Commodity Futures Trading Commission and exempted tokens from being treated as securities.

The industry's efforts were hindered by revelations of Trump's family's lucrative cryptocurrency businesses, including World Liberty Financial and its stablecoin USD1, the $TRUMP memecoin, and a bitcoin mining company. The news led to Democratic support for the bill faltering in the Senate, with some lawmakers fearing they would be seen as voting to further enrich Trump.

The industry is now looking at advancing its agenda through crypto-friendly regulation instead of legislation. However, the prospect of Democratic control of one or both chambers of Congress after the November 2026 midterm elections and potentially winning the White House in 2028 leaves the long-term durability of those gains uncertain.