Trump-linked crypto controversy leaves CLARITY Act facing uncertain Senate approval and regulatory instability.
Custodia Bank CEO Caitlin Long says projects linked to President Donald Trump’s family have added a new strain to an already delicate Senate process. As a result, negotiations over a key market structure bill have slowed. Without a law in place, Long warns that future administrations could reverse regulatory progress.
Caitlin Long Says CLARITY Act Odds a ‘Coin Flip’ as Political Tensions Rise
Controversy surrounding Trump-linked crypto projects is complicating efforts to pass new digital asset rules, according to Caitlin Long. She said concerns from Democratic lawmakers over meme coins and ventures like World Liberty Financial have made bipartisan cooperation more difficult.
Speaking at ETH Denver, Long said political optics now weigh heavily on negotiations. She said passing it is basically a “coin flip,” meaning it could go either way.
The CLARITY Act was introduced in May 2025 to set clear rules for how crypto is regulated in the U.S. It would split oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
House lawmakers approved the bill in July 2025, but the Senate has delayed a vote over disagreements on DeFi and stablecoins. As of February 2026, no final vote has occurred in the Senate.
Long described ethics concerns tied to the Trump family’s involvement in crypto as a central obstacle. She called it “the big showstopper in the CLARITY Act.”
Senate Divisions Deepen Over U.S. Digital Asset Bill
Notably, Senate procedure requires 60 votes to move the bill forward. That means at least seven Democrats must join Republicans to pass the bill. Long said resistance from some Democratic lawmakers has made that difficult.
She singled out Senator Elizabeth Warren as a strong critic of Trump-linked crypto projects. Long added that lawmakers could still reach a compromise that both the White House and Congress accept. However, the bill cannot advance without 60 votes.
Even so, she said support for crypto regulation is not strictly partisan. Long pointed to the work between Senator Cynthia Lummis and Senator Kirsten Gillibrand on digital asset policy. Both lawmakers have previously supported clearer regulatory structures for crypto markets.
Long also warned about relying solely on agency rules to manage crypto. Regulators could attempt to shape policy without Congress. Yet such actions would not carry long-term stability.
She explained that a new administration can change or reverse those rules. In contrast, laws passed by Congress are harder to undo, even if they can still be amended later.
If Congress does not pass legislation, Long believes crypto companies will face uncertainty. Rules could change every time political leadership changes. That would make it harder for businesses and investors to plan for the future.
Downturn Presents ‘Best Time’ to Study Crypto, Says Long
Recent price swings have not dampened Long’s long-term outlook. Crypto prices remain below prior highs after extended declines. Long downplayed recent drawdowns, saying sharp corrections are common in digital asset markets.
The total crypto market is valued at about $2.3 trillion, down 22% over the past month. On the other hand, Bitcoin is trading at $67,903, which is more than 20% lower than its price a month ago.
Image Source: TradingView
Long said market downturns can be useful. Instead of leaving the space, she believes people should use bear markets to learn more about how crypto works. She advised newcomers to focus on gaining knowledge rather than making quick profits.
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