Trump's $1 billion in crypto assets becomes a regulatory variable; why has the US crypto legislation been delayed until 2029 to be implemented?

The long-awaited market structure legislation for the US cryptocurrency industry is now facing a deadlock. According to recent analyses, the crypto bill, once considered a “watershed” regulation, may not pass until 2027, with its actual implementation delayed even further to 2029. Behind this three-year delay lies an intense political power struggle—Trump family’s over $1 billion in crypto assets has become the biggest variable.

Conflict of Interests Becomes the Main Obstacle to the Bill

Latest reports indicate that the Senate is currently at an impasse over key provisions of the crypto legislation. The core dispute centers on a seemingly simple but power-sensitive issue: whether to restrict current high-ranking government officials and their immediate family members from participating in cryptocurrency businesses.

The Democratic Party strongly advocates for including a “Conflict of Interest Ban” in the bill, explicitly prohibiting the President and their family from operating or holding interests in crypto-related projects during their term. This clause directly affects Trump’s real interests. Since taking office in January 2025, Trump and his family have earned over $1 billion in direct gains from multiple crypto projects.

Trump Family’s Crypto Asset Portfolio

• World Liberty Financial (WLFI): a DeFi and stablecoin project co-founded by Trump and his three sons
• American Bitcoin: a Bitcoin mining company supported by the Trump family, currently holding approximately 5,427 BTC, with an estimated return of about 105% between September 2025 and January 2026
• TRUMP and MELANIA Meme Coins: launched on the eve of his inauguration, becoming a highly watched market phenomenon

These assets not only demonstrate the Trump family’s deep involvement in the crypto space but also explain why this political conflict-of-interest clause has become the biggest stumbling block for the bill.

How Political Power Struggles Delay Regulation

Jaret Seiberg, an analyst at TD Cowen, pointed out that if the conflict-of-interest clause were to take effect immediately or in the short term, it would be “almost unacceptable for Trump.” The Republican compromise proposal is to delay the clause’s implementation by three years, thus bypassing Trump’s current term.

However, the issue is that Democrats are unlikely to make unilateral concessions. According to analyses, unless Republicans agree to postpone the entire market structure legislation by three years, Democrats will not accept this arrangement.

The Critical Role of Senate Power Dynamics

The Republican Party needs at least 60 votes in the Senate to overcome Democratic filibusters. This means they must secure support from 7 to 9 Democratic senators, giving Democrats enough leverage to delay the legislative process. Under this power structure, Democrats’ bargaining position is far stronger than it appears on the surface.

How the 2026 Midterm Elections Could Change the Game

As the 2026 midterm elections approach, the situation becomes more complex. The likelihood of Democrats regaining control of the House increases, potentially further strengthening their bargaining power. If legislation is delayed until 2027 for passage and 2029 for enforcement, the final rules are likely to be shaped by the regulatory agencies appointed by the next president.

This means that the current political struggle is not only about Trump’s term interests but also about the future regulatory framework of the entire crypto industry. For Democrats, delaying is not necessarily a bad thing. For the industry, such delays mean the market structure reform is pushed back indefinitely.

Industry’s Real Response

Interestingly, crypto exchanges are not distancing themselves from politics. Recent reports show Gemini Trust Company donated 1.5 million USDC to the pro-Trump political action committee (MAGA Inc.), while Crypto.com’s parent company Foris Dax contributed $20 million. These donations reflect deep industry engagement in the political process.

Long-term Impact on the Industry

The outcome of this political power struggle is that the US crypto industry faces years of regulatory uncertainty. The originally anticipated market structure legislation—seen as a clear milestone for defining industry status and regulating market order—has now become a distant goal.

From 2026 to 2029, during this three-year delay, the industry will continue to operate in an existing regulatory vacuum. For institutional investors and compliant projects seeking clear regulatory frameworks, this is undoubtedly a long-term disadvantage.

Summary

Trump family’s crypto assets are not just a business matter but a key variable in determining the timeline of US crypto regulation. The Senate deadlock triggered by the conflict-of-interest clause reflects a deep conflict between political interests and industry development. From the originally planned 2026 to the now projected 2029 delay, this three-year extension will profoundly influence the industry’s trajectory. For the crypto sector, the biggest challenge is not technology or market conditions, but how to operate continuously amid political uncertainty.