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How Trump’s crypto winnings undermined the industry’s push for looser regulation

On Sept 15, 2026, the Senate rejected the Clarity Act on a procedural vote, falling short of the required 60-vote majority needed to advance crypto-friendly regulatory legislation.
The crypto industry spent over $119 million backing candidates to advance the Clarity Act, which would have categorized most crypto as commodities under the Commodity Futures Trading Commission rather than securities requiring stricter Securities and Exchange Commission oversight.
Revelations of Trump's crypto wealth proved damaging: financial disclosures reported more than $1.4 billion in crypto-related income for 2025, while Reuters investigation documented about $2.3 billion total from four ventures since the 2024 election.
Coinbase CEO Brian Armstrong's January 2026 opposition forced delays and revisions; later, attempts to add ethics provisions failed to win over Senate Democrats, while Banking groups rejected the compromise language on stablecoin restrictions.
Opposition from Banking groups prompted three Republicans to defect, dooming the bill and leaving crypto's long-term regulatory gains uncertain amid prospects of Democratic control of Congress after November 2026 midterms.

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