Protecting the crypto world! Trump vows to create an "unbreakable" cryptocurrency regulatory framework

Trump Promises to Promote Legislation to Establish a Sustainable Cryptocurrency Regulatory Framework, but Controversies Over Family Conflicts of Interest Still Challenge the Passage of the CLARITY Bill Across Party Lines.

U.S. President Donald Trump once again endorses the cryptocurrency industry, vowing to personally lead the push for legislation to create a "future-sustainable" market regulation framework for digital assets, ensuring that U.S. cryptocurrency policies are not easily overturned with changes in political parties.

On Wednesday, Trump posted on his social platform Truth Social, directly criticizing the former chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, and the "anti-cryptocurrency army" he leads, accusing them of imposing tough regulations on the crypto industry over the past few years, which has led to Bitcoin, crypto perpetual contracts, and innovation flowing heavily overseas. He wrote:

Under my leadership, we will formally codify a "preventive" digital asset market framework into law, so that those "anti-coin" advocates can no longer overturn it. The new frontier of finance is rising on American soil, and "Trump" will definitely not let the crypto community down!

This is also another public signal from Trump linking cryptocurrencies with "American financial hegemony," especially as the U.S. Congress is currently accelerating the passage of the Digital Asset Market Clarity Act (CLARITY Bill).

This bill, which concerns the regulatory framework for the cryptocurrency market, finally passed a Senate Banking Committee vote in May after several months of delay. The main reason for the bill's stagnation involves power struggles between Wall Street banking lobbies and the crypto industry, particularly around stablecoin yield distribution, consumer protection, and financial risk management.

Legislative Road Is Long, Bipartisan Consensus Is Key

Although the bill has made initial progress, market analysts believe that the CLARITY Bill still has a long way to go before it becomes law. Benchmark analyst Mark Palmer said that for the bill to pass smoothly, it must garner more support from Democratic senators. He pointed out:

The draft bill passed by the Banking Committee must be integrated with the market structure bill advanced by the Senate Agriculture Committee in January, forming a comprehensive draft before being sent to the full Senate for a vote.

To overcome the Senate's "filibuster" (where a minority party stalls legislation through marathon speeches), the bill needs 60 votes in favor, which will require substantial support from Democratic senators.

Trump Family's "Crypto Business" Sparks Conflict of Interest Concerns

However, the approaching election and political struggles cast a shadow over the bill's prospects. TD Cowen's Washington research team admitted that the chances of the crypto market structure bill passing this year are very slim. The biggest obstacle is the recent controversy surrounding conflicts of interest involving Trump, making it difficult for Democrats to compromise politically.

Jaret Seiberg, Managing Director of TD Cowen's Washington research team, stated:

Unless the bill includes provisions to directly restrict the President's conflicts of interest, it will be extremely difficult for Democrats to support the crypto legislation amid the current political climate.

Current public focus includes Trump family's involvement in crypto projects like World Liberty Financial and their business activities related to prediction markets.

During the Senate Banking Committee's bill review earlier this month, Democratic Senator Ruben Gallego warned that although he voted in favor to advance the CLARITY Bill this time, he would oppose it in the full Senate vote unless Trump's and his family's conflicts of interest in the crypto space are properly addressed.

• This article is reprinted with permission from: "BlockBeats"
• Original title: "Protecting the Crypto Community! Trump Vows to Build an 'Unoverturnable' Cryptocurrency Regulatory Framework"
• Original author: Block Sister MEL