Clarity Act Draft Bars Trump’s Crypto Ventures Until 2029

The U.S. Senate’s new Clarity Act draft bans former President Donald Trump from directly participating in cryptocurrency projects until 2029.

Scope of the Ban and Timeline

■Full prohibition: Trump is barred from equity stakes, board positions, and direct investment in crypto firms.

■Effective period: Starts January 1, 2025 and remains in force until December 31, 2029.

■Exceptions: The restriction targets direct governance roles only; indirect investments and token trading remain untouched.

Global Regulatory Ripple Effect

■Mirrors the EU’s MiCA framework, amplifying international compliance pressure.

■U.S. regulators such as SEC and FINRA signal support for similar constraints to bolster global financial stability.

■Countries like Japan and Singapore view the move as a “investor protection” measure, while Turkey’s BDDK prepares new guidelines to fill regulatory gaps.

Market Reaction and Token Performance

■Bitcoin (BTC): $65,980 (‑0.40%)

■Ethereum (ETH): $1,934.45 (+0.83%)

■Dogecoin (DOGE): $0.072891 (‑0.25%)

■Solana (SOL): $77.83 (‑0.08%)

■USDC: $0.99993 (‑0.00%)

These price moves indicate a 1.2% rise in crypto volatility following the announcement.

Strategic Moves by Institutional Investors

■Institutional funds plan to divest 15% from Trump‑linked tokens.

■Major banks are gearing up to tap new opportunities via MiCA‑compliant crypto ETFs.

■Tech firms may shift blockchain infrastructures to public platforms to mitigate regulatory risk.

Deniz Arel Analysis: This clause of the Clarity Act stands as one of the sharpest policy interventions in the U.S. crypto ecosystem. By restricting Trump’s direct investment power until 2029, it not only curtails a high‑profile player’s influence but also paves the way for a “regulation‑strong” investment framework. Institutional players will inevitably focus on liquidity management and compliance costs during this uncertainty; in the long run, a more transparent and supervised crypto environment could restore investor confidence.