Trump's Crypto Ties Stall US Bill, Leaving Regulators in Limbo

The CLARITY Act, a bill aimed at clarifying SEC versus CFTC jurisdiction over digital assets and creating registration regimes for exchanges and brokers, is stalled in the Senate due to controversy surrounding President Donald Trump's crypto entanglements.

A provision buried within the act allows for tax deferrals on capital gains, which could benefit Trump significantly, as he reportedly has over $1.4 billion in crypto income tied up in World Liberty Financial and related entities.

The Senate left for recess without a vote, leaving investors uncertain about the regulatory future of the industry.

Democrats have been pushing for stronger conflict-of-interest safeguards, citing Trump's exposure to the TRUMP and MELANIA memecoins, but talks are ongoing.