Custodia CEO Says Trump Family Crypto Ties Are Part of Clarity Act Problem
Decrypt
by Jason NelsonFebruary 20, 2026
AI-Generated Deep Dive Summary
Caitlin Long, CEO of Custodia Bank, has expressed concerns that the involvement of Donald Trump's family in cryptocurrency projects has complicated efforts to pass the Clarity Act, a key piece of legislation aimed at regulating digital assets. Speaking at ETH Denver, Long highlighted how Trump-associated crypto ventures, such as World Liberty Financial and meme coins linked to his family, have created political controversies, making it harder for the bill to gain bipartisan support in the Senate. She described the bill's chances of passing as a "coin flip," emphasizing that without legislative clarity, future administrations could reverse current regulatory approaches through rulemaking.
The Clarity Act, introduced in May 2025 and passed by the House in July 2025, seeks to define crypto regulations in the U.S., splitting oversight between the SEC and CFTC. However, its progress has stalled in the Senate due to disputes over DeFi and stablecoin provisions, with Long pointing out that Senator Cynthia Lummis herself has acknowledged the added challenges posed by Trump family ties. Long stressed that the bill's success hinges on overcoming political hurdles, particularly with Democrats like Elizabeth Warren opposing the Trump-linked activities.
Despite these obstacles, Long remains optimistic about crypto's long-term potential and the importance of education during bear markets. She advised investors to focus on self-education, as this knowledge isn't readily available in traditional schooling. With the crypto market currently facing a downturn, Long believes that understanding the industry is more crucial than ever, making this an opportune time for new investors to learn and grow.
This issue matters significantly to readers interested in crypto because it underscores the challenges of achieving regulatory clarity in a rapidly evolving sector. The Clarity Act's uncertain future highlights the broader struggle between innovation and political influence, which could shape the trajectory of digital assets in the U.S. Long's insights also emphasize the importance of staying informed and educated for those navigating the complexities of the crypto market.
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Originally published on Decrypt on 2/20/2026