Crypto Industry's Looser Regulation Bid Falters Amid Trump Family Wealth Controversy

The crypto industry suffered a setback when President Trump's family wealth and business ties to cryptocurrency came under scrutiny, causing bipartisan support for the Clarity Act to falter.

Trump had been seen as a supporter of the bill, which aimed to regulate cryptocurrencies under the Commodity Futures Trading Commission rather than treating them as securities. However, reports about his family's crypto earnings, including over $2.3 billion since the 2024 election, created controversy and eroded support for the measure.

The industry had spent millions on lobbying, securing some wins with the GENIUS Act in July 2025, but the Clarity Act ultimately failed to pass due to Democratic opposition.