The Most Important Cryptocurrency Law in the US Facing Challenges: "Has Trump Become the Biggest Obstacle?"

2025 has been seen as a positive milestone for the cryptocurrency legal framework in the US. The country’s Congress has passed the GENIUS Act, establishing a stablecoin regulatory framework, while also advancing the progress of the CLARITY Act – a bill considered one of the most important to clarify how the entire digital asset market is regulated. However, according to the latest analyses, the prospects for passing the CLARITY Act are becoming less promising than initially expected. CLARITY Act – The Most Anticipated Legal Pillar After GENIUS The CLARITY Act is designed to: Establish a clear legal framework for the cryptocurrency market in the USDefine the regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)Clarify the classification of digital assets, determining which are securities and which are commoditiesExempt certain cryptocurrencies from registration requirements under the Securities Act of 1933 if specific conditions are met Therefore, the CLARITY Act is seen as a foundational step that could end the long-standing “legal ambiguity” and hindered growth of the crypto industry in the US. Risks of Delays Until 2027, Even 2029 According to a new report from TD Cowen, a major US investment bank, the likelihood of the CLARITY Act being passed in the short term is significantly decreasing. Jaret Seiberg, CEO of TD Cowen, commented: The bill may see some progress this yearBut its official passage is more likely to be pushed back to 2027In a worse scenario, if political deadlock persists, the regulations could finally take effect only in 2029 This outlook contradicts earlier expectations that the CLARITY Act would quickly become law within the current term. Political Motives and Democratic Party Calculations According to TD Cowen’s analysis, one of the main reasons for the delay is the political calculations of the Democratic Party. Specifically: Democrats do not want to rush the passage of the CLARITY ActThey believe there is a chance to regain control of the House in the November midterm electionsIf they control Congress, they will have a significant advantage in shaping the bill’s content according to their agenda Thus, prolonging discussions could serve strategic political interests, even if it means delaying the legal framework for the crypto market. “Conflict of Interest” – The Biggest Bottleneck of the CLARITY Act According to Mr. Seiberg, the conflict of interest clause is the biggest obstacle currently. The Democratic Party insists on: Restricting or banning high-ranking US officials and their families from participating in or benefiting from crypto businesses and projectsIncreasing transparency and preventing political abuse in the digital asset sector This clause has caused the bill to become a point of intense contention. Trump and Family Become Focal Points of Controversy The TD Cowen report points out that President Donald Trump and his family are involved in numerous crypto projects and businesses, which has become a sensitive political issue. This involvement: Is viewed by Democrats as a potential conflict of interestMaking the passage of the CLARITY Act more complicated, as any regulation could be interpreted as “serving personal interests” As a result, Trump is seen as “the biggest obstacle” to completing the US crypto legal framework. Compromise Option: Delay Sensitive Clause for 3 Years To break the deadlock, TD Cowen suggests a possible compromise scenario: Postpone the implementation of the conflict of interest clause for about 3 yearsDelay the enforcement of this clause until after the current term ends This solution is believed to: Reduce immediate political pressureCreate momentum for the CLARITY ActAllow the crypto market to have a clear legal framework sooner rather than remaining “hanging” Important Hearing Scheduled for 15/01 A hearing on the CLARITY Act has been scheduled for 15/01, seen as the next crucial step. If passed, the CLARITY Act will: Redefine how the US manages digital assetsClarify the roles of the SEC and CFTCCreate a more transparent legal environment for organizations and investors in crypto However, with current political barriers, the path ahead for this most important crypto legislation in the US remains challenging.