Custodia Bank CEO Caitlin Long said controversy tied to President Donald Trump’s family could derail the CLARITY Act. Speaking at ETH Denver, she warned that Trump-linked crypto ventures have complicated bipartisan support. The bill aims to define U.S. digital asset regulation and clarify federal oversight. Yet Senate disputes over DeFi and stablecoins continue to stall progress.
Long has stated that Trump-associated meme coins and projects such as World Liberty Financial have intensified political tension. She said the controversy has made it harder for lawmakers to secure cross-party backing. As a result, the bill’s future now appears uncertain.
“I think it’s a coin flip at this point,” Long said. She added that she would not be surprised if Congress enacts the bill or lets it fail.
Long said lawmakers now view the Trump family’s involvement in crypto as an ethics issue. She described it as “the big showstopper in the CLARITY Act.” That issue, she noted, has complicated Senate negotiations.
She referenced Wyoming Senator Cynthia Lummis, who has worked to advance crypto legislation. According to Long, Lummis acknowledged that the controversy made her efforts harder. Long said the Senate must secure a cloture vote, which requires 60 votes.
That threshold means at least seven Democrats must support the bill. Long pointed to strong criticism from some Democrats, including Senator Elizabeth Warren. She said those objections center on the Trump family’s crypto activities.
Even so, Long noted bipartisan engagement on crypto policy. She cited cooperation between Senators Lummis and Kirsten Gillibrand. Their work reflects ongoing cross-party dialogue on digital asset regulation.
Lawmakers introduced the CLARITY Act in May 2025. The bill would codify crypto market structure and create a comprehensive regulatory framework. It would split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The House passed the bill in July 2025. Since then, the Senate has delayed further action. Disputes over DeFi and stablecoin provisions remain unresolved as of February 2026.
Long said regulators could pursue similar policy outcomes through rulemaking. Yet she warned that such measures would lack permanence. A new administration could reverse agency rules through fresh rulemaking.
By contrast, congressional statute would provide durability. Long said statutory law would prove harder to change. She argued that lasting clarity requires congressional action rather than temporary agency rules.
Despite legislative uncertainty, Long said market volatility has not shaken long-term participants. She described a 50% drawdown as routine for those with experience in crypto markets. According to her, downturns offer learning opportunities.
She encouraged newcomers to use bear markets to educate themselves. “Bear markets are the best time to get self-educated,” Long said. She advised individuals to invest in their own understanding of the space.
Meanwhile, industry analysts observe that crypto policy now intersects with partisan politics. What began as a technical effort to define regulatory authority now faces broader ethical debates. Lawmakers continue to negotiate possible compromise language.
As discussions continue, one question remains: can Congress separate regulatory clarity from political controversy in time to secure the votes needed for passage?
Read More: US CLARITY Act Could Pass by April as Stablecoin Talks Shift
Custodia Bank CEO Caitlin Long says Trump family crypto ventures have sparked controversy that may block CLARITY Act passage. She calls the bill a Senate coin flip due to DeFi and stablecoin disputes and the 60-vote hurdle. Takeaway: lawmakers need durable crypto regulation that can survive political shifts.