Cryptocurrency was one of the major topics of discussion during President Trump’s Presidential campaigns. He vowed to make the US a cryptocurrency hub, and make the rules easier for crypto-based companies to flourish. Soon after assuming office Trump created a digital asset reserve for the US. The next big cryptocurrency-related legislation is the CLARITY Act, which could not go well for President Trump’s crypto wallet. Let’s discuss what’s going on.
Will The CLARITY Act Bar President Trump From Holding Cryptocurrency?
The CLARITY Act has faced some hurdles among policymakers. Many have been asking additional ethics language to bar people in power from profiting from cryptocurrencies. This especially target President Trump, given that his family made more than $1 billion in crypto profits since he took office.
According to a Bloomberg report, the bipartisan ethics proposal for the CLARITY Act could require Trump to divest from cryptocurrency-related businesses to address conflicts of interest.
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While the ethics language especially targets President Trump’s cryptocurrency ventures, it should be noted that the President does not directly manage his crypto investments. President Trump’s sons, Barron Trump, Eric Trump, and Donald Trump Jr., are the ones managing the cryptocurrency empire.
Will The Legislation Be Passed?
The CLARITY Act is expected to be voted on by the Senate in the next few days. The act requires 60 Senate votes to pass into law. Sens. Thom Tillis (R) and Ruben Gallego (D) are negotiating how additional ethics language can be placed into the act.
If the CLARITY Act is passed into law, we could see a massive surge in investor confidence. The legislation aims to bring more regulatory clarity and investor protection. The cryptocurrency market could see some positive price action if investors feel better protected. We could also see increased institutional investments if the law is passed.
