Donald Trump's billionaire buddies are warning that a new bill could 'hijack' the President's crypto legacy and bankrupt Americans who are cashing in on the digital currency.

Close Trump ally Republican Senator Tim Scott is working to pass a new bill called the Clarity Act, with the support of cryptocurrency giant Coinbase, before the midterm elections. The bill is split across two committees - also going through agriculture, chaired by Senator John Boozman.

The Clarity Act in it's entirety would create a strict national rulebook for digital currency, forcing crypto companies to follow the same banking regulations as major Wall Street firms. 

The law would require platforms to register with the government and disclose exactly how they handle customer money. 

As the GOP-backed proposal snakes through Congress, Americans are bracing for big changes to their digital wallets - and it's frustrating the President himself, who could see a hit to his post-White House cash flow.

The bill's regulation would notably slap large amounts of red tape on Trump's businesses, like World Liberty Financial, the family-run venture that has thrived as a private, flexible alternative to traditional banks. 

These new rules would likely force the Trump family to go public with their list of investors and limit how they can launch new digital tokens. WLF has already lined the family's pockets with over $1 billion.

The move has reportedly incensed some in the White House and high-ranking industry titans, who view it as a direct assault on the President's previous successes in the digital asset space.

While Trump remains focused on his broader agenda, an insider says the White House is aware of the friction and is apparently 'annoyed.'

'I have heard from people who are close to the White House who say that he's annoyed that this is coming back up,' said the former Senate staffer who has close ties to the administration.

Senator Thom Tillis is now pushing the US Senate Banking Committee to delay the bill until May amid ongoing issues over their 'stablecoin yield rules' which are essentially interest-bearing accounts for digital assets that regulators fear could bypass traditional banking safeguards.

The banking lobby has found a supporter in Scott, the powerful Senate Banking Chairman, who is described as being in a 'tough position' between industry leaders and GOP colleagues. 

A Republican congressional aide familiar with the bill and it's progress says the remaining delay rests solely on the ongoing negotiations between Senator Thom Tillis and the White House regarding the 'yield language.'  

Because Republicans only have a one-vote majority on the committee, they need unanimous GOP support to advance the bill, and Democrats will not vote for it without that unanimous Republican backing it is missing. 

Three of Trump's billionaire friends, granted anonymity due to their very high-profile public personas, are sounding the alarm. 

For these insiders, the 'Clarity Act' isn't just a policy shift, it's a direct threat to their billion-dollar bottom line - and the President himself is not immune.

Since returning to the White House, Trump's net worth has reportedly rocketed by $3 billion, fueled by his digital asset empire. 

The last pro-crypto bill, the Genius Act - also led by Scott and passed in July 2025  - was hailed by a new class of MAGA-aligned billionaires. 

It established a regulatory framework for cryptocurrency without a ton of red tape and opened the floodgates for more crypto giants to get in the game.

Trump's Middle East envoy, Steve Witkoff, and controversial TRON founder, Justin Sun, have both seen their fortunes swell alongside the President's. 

But now, critics are branding the new Clarity Act a 'corporate hijacking' of the crypto industry that would hurt America's chances of establishing itself as the 'Crypto capital' of the world, as Trump has stated he wants it to be.

While its proponents claim it provides necessary regulation, Trump's coalition argues the bill is designed to favor massive exchanges like Coinbase, led by CEO Brian Armstrong, at the expense of the decentralized vision the President has championed.

A well-known cryptocurrency investor who asked to remain anonymous warned that the bill is being hashed out in 'backroom deals' that exclude the rest of the industry.

'It is the ultimate irony that the future of the industry gets to be decided by Brian Armstrong at Coinbase and a bank lobby in a room with zero transparency,' a Crypto titan told the Daily Mail. 

'There's a real risk that you get to a bill that works for Coinbase and favors large, heavily capitalized incumbents and completely pulls the ladder up for newcomers'.

They described the maneuver as a 'deal with the devil' that would leave the US uncompetitive globally.

The bill has currently stalled in the Senate over the issue of stablecoin rewards, which allow everyday Americans to earn high-yield interest that traditional banks can't match. 

If passed, sources warn it would effectively dismantle the protections and consumer freedoms established by Trump's signature crypto achievement from last year: The Genius Act.

The Genius Act, pushed forward by President Trump last year, was hailed as a landmark victory for crypto lovers. It established a pro-consumer framework that allowed the stablecoin market to flourish, providing a bridge between traditional finance and the digital economy.

A former Senate Committee staffer who worked on the Genius Act says the new bill 'rips up' a hard-won compromise.

'Genius struck the balance that helped America be the crypto capital, while also making sure we didn't screw up the financial system... Clarity throws that all into the air,' the former staffer said. 'It's a total redoing of the system... many of the crypto people who love Genius and helped us get that done are now livid.'

At the core of this dispute is a high-stakes populist fight against the banking establishment.

Wall Street banks are reportedly lobbying hard for the Clarity Act because it seeks to kill stablecoin rewards.

'The bank lobby has tried to take another bite at the stablecoin apple and re-trade that deal,' the crypto-investing billionaire said, noting that banks are 'terrified' of losing deposits to digital assets. 

'Rather than embrace the technology... they're just trying to hamstring it and curtail it.'

'Most of the banks, which are big Tim Scott supporters, are strongly in favor of clarity. So he has constituents who want it,' the former Senate staffer told the Daily Mail. 

A spokesman from the Senate banking committee pushed back, calling Scott 'one of President Trump's strongest allies' in delivering crypto wins for Americans. 

'He is now working just as hard to deliver clear market structure rules that keep innovation in America, protect investors, and prevent a future Democrat administration from targeting the industry, as was seen during the Biden administration,' the spokesman said.

Senator Cynthia Lummis also tells the Daily Mail: 'Chairman Scott and I have been working hard on market structure legislation for almost a year. It's time to cinch up and get this bill done. Now.'

David Sacks concluded his 130-day term as White House AI and crypto czar on March 26, and as of today, no replacement has been named.

With no dedicated White House coordinator inside the West Wing to police new policy, the final committee push is proceeding in a power vacuum.

Now, with only weeks left to advance the bill before the calendar tightens, Trump's fellow elites are scrambling to ensure that the 'Clarity' sought by the Hill doesn't end up being the death knell for the President's crypto fortune.