Trump Pocketed $1.4B From Crypto While Regulating It and Took the CLARITY Act Down With Him

• Trump disclosed $1.4B in crypto income for 2025, including $635M from his $TRUMP memecoin, while backing the CLARITY Act, which is waiting for a Senate vote
• The only two Democrats who voted for the bill in committee, Gallego and Alsobrooks, now demand a strong ethics provision before any floor vote, which the White House opposes
• The bill needs 7-9 Democratic votes to reach 60, has 2, missed its July 4 deadline, and must clear the Senate before August 7 or risk dying until 2027 or beyond

President Donald Trump’s latest financial disclosure has changed the conversation around the CLARITY Act vote almost overnight. What was expected to be the crypto industry’s biggest legislative milestone of 2026 is now caught in an ethics fight. This was after records showed Trump earned more than $1.4 billion from crypto-related businesses last year. The bill itself hasn’t changed, but the politics around it certainly have. With the Senate racing against the calendar, the next few weeks could determine whether crypto regulation finally arrives in the US or slips into another Congress.

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Why Trump’s $635M Memecoin and Two Democratic Senators Now Hold the Bill Hostage

Trump’s annual disclosure, filed with the Office of Government Ethics, revealed an extensive crypto portfolio and income stream. The filing listed roughly $635 million in licensing royalties tied to the TRUMP memecoin and more than $500 million from World Liberty Financial token sales. Along with this, approximately $50 million in Bitcoin holdings, nearly $25 million in Ethereum, and additional exposure to the family’s USD1 stablecoin venture.

The disclosure landed at a particularly sensitive moment. The Senate is preparing for the next stage of the CLARITY Act vote. This would establish the first comprehensive framework for digital asset markets in the US. Ironically, many of the assets Trump disclosed owning or profiting from fall under the very categories the legislation is designed to regulate.

The bill still needs 60 Senate votes to move forward. Republicans control 53 seats. But with Senators Josh Hawley and Rand Paul expected to oppose the legislation, GOP leaders will likely need between seven and nine Democratic votes to progress.

But this is where the problem begins. Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland, the only CLARITY Act Democrats who supported the bill in committee, have since made it clear their floor votes depend on stronger crypto ethics legislation. Both senators argue that elected officials, including the president, should not be allowed to profit from digital assets while helping shape the rules governing the industry.

Alsobrooks went further, saying Trump and his family are “the most corrupt we’ve ever seen in the White House.” Meanwhile, Gallego pledged to continue pushing for tighter safeguards around the president’s crypto interests.

In addition, the White House has opposed provisions specifically targeting the president’s personal holdings. This has left all negotiations at a standstill.

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Time Is Running Out for Crypto Regulation in 2026 as CLARITY Act Vote Slows Down

The legislative calendar is becoming just as significant as the political disagreement. The White House had previously targeted July 4 for the bill’s signing, but that deadline has already passed. Senators return from recess on July 13. This leaves only a narrow window before the August 7 recess to secure enough bipartisan support.

Market watchers have started adjusting expectations accordingly. Galaxy Research recently lowered its estimated odds of passage to 50%. Meanwhile, prediction markets have also reduced confidence that the legislation will become law this year. Although law enforcement endorsements have improved sentiment slightly, the ethics dispute remains unresolved.

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