Custodia CEO Says Trump Family Crypto Ties Are Part of Clarity Act Problem

If Congress fails to cross the CLAIRITY Act, Custodia Financial institution CEO Caitlin Lengthy says controversy tied to President Donald Trump’s household will share a part of the blame.

Talking at ETH Denver on Wednesday, Lengthy mentioned Trump-associated meme cash and different crypto ventures, together with World Liberty Monetary, have made it tougher to safe bipartisan backing for the invoice, which might outline how digital property are regulated within the U.S. and make clear the roles of federal businesses.

“It created controversy,” Lengthy instructed Decrypt. “Lummis herself has mentioned it made her job more durable,” she mentioned, referring to efforts by Wyoming Senator Cynthia Lummis.

Due to this, Lengthy mentioned, the invoice’s prospects stay unsure.

“I believe it is a coin flip at this level,” she mentioned. “I would not be shocked both manner, if it will get enacted or it dies.”

Introduced in Might 2025, the CLARITY Act would codify key crypto market constructions and create a complete regulatory framework for digital property, splitting oversight between the SEC and the CFTC.

It handed the Home in July 2025, however as of February 2026, the CLARITY ACT has been delayed within the Senate as a consequence of disputes over DeFi and stablecoin provisions.

Lengthy mentioned regulators might search comparable outcomes by rulemaking, however such actions would lack permanence within the face of the American political system.

“When a brand new administration is available in, these guidelines might be reversed by new rule-making,” she mentioned. “Whereas if Congress places it in statute, it doesn’t suggest it may’t be modified. It is only a lot more durable to vary. So it’s significantly better if Congress enacts the legislation, and which means it is sturdy.”

Lengthy mentioned what lawmakers are calling an ethics situation tied to the Trump household’s involvement in crypto has develop into “the massive showstopper within the CLARITY Act.”

“There’s a chance they attain an settlement on one thing the White Home can stay with, and Congress is comfy with, however they have to have the ability to get the cloture vote,” she mentioned, referring to the 60 votes required within the Senate. “They have to get seven Democrats over the road, and the Democrats are very outspoken, specifically, Elizabeth Warren, in opposition to the Trump household’s actions on this space.”

Lengthy mentioned there may be bipartisan help for crypto laws, pointing to Senators Lummis and Kirsten Gillibrand working collectively on crypto coverage.

Regardless of the fear that the invoice could not cross, and amid the crypto’s prolonged downturn, Lengthy mentioned market volatility has not dampened hope.

“These of us who’ve been round for a very long time, a 50% drawdown is nothing,” she mentioned, including that for individuals getting into the area throughout a downturn, Lengthy mentioned bear markets current a chance to be taught.

“Bear markets are the perfect time to get self-educated,” she mentioned. “Finest recommendation I’ve all the time given is simply put money into your self, as a result of that is one thing that you simply’re not going to be taught at school.”