TLDR:

• Custodia CEO Caitlin Long called Trump family crypto ties the “big showstopper” blocking the CLARITY Act in the Senate.
• Long described the bill’s Senate passage as a “coin flip,” with seven Democratic votes still needed to reach cloture.
• Trump-linked projects like World Liberty Financial have made securing bipartisan Senate support significantly more difficult.
• Long warned that without legislation, crypto regulations remain vulnerable to reversal by any future incoming administration.

Custodia Bank CEO Caitlin Long has identified Trump family crypto ties as a central obstacle to the CLARITY Act’s Senate passage.

Speaking at ETH Denver on Wednesday, Long said meme coins and ventures linked to President Donald Trump have eroded bipartisan support for the bill.

She described its chances as a “coin flip.” The legislation passed the House in July 2025 but remains stalled in the Senate over ethics concerns and stablecoin disputes.

Long Points to Trump-Linked Crypto as the “Big Showstopper”

Long did not hold back when asked about the bill’s Senate difficulties. She called the Trump family’s involvement in crypto “the big showstopper in the CLARITY Act.”

Projects like World Liberty Financial and Trump-associated meme coins have drawn sharp Democratic opposition. That opposition has made the 60-vote cloture threshold increasingly difficult to reach.

Senator Elizabeth Warren has been among the most outspoken critics of Trump’s crypto activities. Long noted that even Senator Cynthia Lummis, a leading crypto advocate, admitted the controversy has complicated her efforts. “It created controversy,” Long told Decrypt.

“Lummis herself has said it made her job harder.” The ethics dimension has shifted the debate away from policy and toward politics.

Seven Democratic votes are needed to advance the bill past the Senate cloture threshold. So far, that number has proven hard to secure. Long acknowledged that an agreement satisfying both Congress and the White House remains possible.

“There is a possibility they reach an agreement on something the White House can live with, and Congress is comfortable with,” she said, “but they’ve got to be able to get the cloture vote.”

Meanwhile, negotiations are still active. White House officials, lenders, and the Crypto Council for Innovation met on Thursday to discuss stablecoin reward provisions.

That issue has emerged as another major sticking point alongside the ethics controversy. Both problems must be resolved for the bill to move forward.

Long Warns Against Relying on Rulemaking Over Legislation

Beyond the political obstacles, Long raised a broader concern about regulatory durability. She warned that rules established through agency rulemaking carry no permanent weight.

“When a new administration comes in, those rules can be reversed through new rule-making,” she said. A statutory framework, by contrast, requires a much harder process to undo.

Passing the CLARITY Act would lock in a regulatory structure that is far more resistant to political change. “If Congress puts it in statute, it doesn’t mean it can’t be changed,” Long said.

“It’s just a lot harder to change.” That durability is precisely why she believes congressional action matters more than regulatory guidance alone.

Long also addressed the current market downturn with measured perspective. She noted that a 50% drawdown is familiar to anyone who has been in crypto for years. “Those of us who’ve been around for a long time, a 50% drawdown is nothing,” she said.

Bear markets, she added, are an opportunity to build knowledge, with her consistent advice remaining the same: “Bear markets are the best time to get self-educated.”