The CLARITY Act's Biggest Obstacle Isn't Crypto Regulation — It's Trump's Crypto Ties

The CLARITY Act's Biggest Obstacle Isn't Crypto Regulation — It's Trump's Crypto Ties Khyathi Dalal Mon, June 22, 2026 at 3:30 AM GMT+7 6 min read David Nage, portfolio manager at Arca, stated that the final hurdle facing the CLARITY Act may have less to do with crypto regulation and more to do with ethics provisions tied to elected officials and senior government leaders. In an X post on June 16, Jeff Dorman, CIO at Arca, cited Nage, who revealed that after spending a week meeting lawmakers and congressional staff in Washington, the core policy framework behind digital asset market structure legislation is largely complete. “We are very close,” Nage wrote. “Call it 80%–85% finished.” A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast The House passed the CLARITY Act in July 2025 and Senate Banking Committee advanced its version in May by a 15-9 vote. But the bill currently sits on the Senate calendar awaiting further action. Nage highlighted three major items remain before the legislation can reach the Senate floor: Merging the Banking Committee and Agriculture Committee versions of the bill. Resolving concerns surrounding decentralized finance developer protections. Finalizing ethics and conflict-of-interest language. He also argued that one of the most contentious issues earlier this year, stablecoin yield, has largely been resolved. Nage believes the real fight centers on ethics rules designed to prevent elected officials and senior government leaders from profiting from crypto businesses they oversee. Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time The issue has become politically sensitive because of scrutiny surrounding President Donald Trump’s family crypto ventures, including World Liberty Financial and other digital asset projects. A Senate Banking Committee amendment introduced by Sen. Chris Van Hollen (D-MD) that would have prohibited the president, vice president and members of Congress from participating in crypto businesses failed in committee. However, Nage noted that Republicans largely opposed the amendment on procedural grounds rather than debating the substance of the proposal. According to Nage, Senate Democrats are unlikely to provide the votes necessary to clear the chamber’s 60-vote threshold without stronger ethics safeguards. The White House has reportedly pushed back against provisions perceived as directly targeting President Trump. That standoff has become the central obstacle in negotiations, Nage argued. See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Nage’s proposal would prohibit crypto business activity across the board for the president, vice president, senior executive branch officials and members of Congress. He expects Senate negotiators to continue working through ethics and enforcement language over the coming weeks. His base-case scenario calls for a merged Senate package by late June or early July and Senate floor vote in mid-to-late July. Also, he sees a final enactment before Congress leaves for its August recess. "The substance is done," Nage wrote. "What’s left is a political optics problem." Read Next: Think you’re saving enough for your kids? You might be dangerously off — see why Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. Residential real estate has historically provided investors with income potential and long-term appreciation, but direct ownership can be expensive and time-consuming. ARK7 enables investors to buy fractional shares of rental properties, offering access to potential rental income and real estate exposure without property management responsibilities. By lowering the barrier to entry, the platform gives investors another way to diversify beyond traditional stocks and bonds. Electric aviation is an emerging industry with the potential to transform personal transportation and urban mobility. Doroni i

The CLARITY Act's Biggest Obstacle Isn't Crypto Regulation — It's Trump's Crypto Ties

Key takeaways

More in business