Trump's crypto advisor: Stablecoin legislation progress unaffected by government shutdown; US crypto regulation may see a turning point

The U.S. government faces a partial shutdown risk, but the key legislation for crypto industry regulation—the “Clarity for Payment Stablecoins Act”—is moving forward without interruption. President Donald Trump’s crypto policy advisory team states that regardless of political gridlock, this bill will serve as a crucial pillar in reshaping the financial system in 2025 and beyond. Analysts believe this signals the Republican Party’s accelerating push to “restart U.S. crypto asset regulation,” which could directly impact the regulatory environment for stablecoins, exchanges, and Web3 innovative companies.

Trump Team: Government Shutdown Won’t Halt Clarity Act Progress

Recently, the U.S. government has been embroiled in a fiscal deadlock, risking a partial shutdown of certain agencies. However, the crypto advisory team from Trump’s camp clarified that the legislative process for the “Clarity for Payment Stablecoins Act” remains on track.

Brian Brooks, a former OCC official and policy advisor to Trump’s campaign, told CoinDesk, “Even if some government agencies are temporarily shut down, the legislative agenda of the Senate Finance Committee continues. The advancement of the Clarity Act is driven by bipartisan consensus—it’s about America’s financial sovereignty and technological competitiveness.”

Brooks emphasized that this bill is not a “partisan bill,” but rather an update to the infrastructure of the U.S. financial system. He warned that the U.S. cannot fall behind the EU’s MiCA framework or Hong Kong’s tokenization initiatives in the global stablecoin race, or else the dollar’s international payment dominance could be challenged.

What Is the “Clarity for Payment Stablecoins Act”?

Introduced by U.S. House Financial Services Committee Chair Patrick McHenry, this bill aims to establish clear regulation for “payment stablecoins.” Its core provisions include:

1. Dual Licensing at Federal and State Levels: Allow compliant entities to issue stablecoins after approval from either the Federal Reserve or state regulators.
2. Reserve Transparency Mechanism: Require issuers to disclose reserve compositions monthly, verified by third-party audits.
3. Ban on Algorithmic Stablecoins: Explicitly prohibit algorithmic stablecoins not backed by real assets to prevent systemic risks.
4. Enhance USD Digitalization Competitiveness: Clarify that stablecoins are part of the U.S. dollar ecosystem, laying groundwork for future CBDC interoperability.

The bill has undergone two rounds of revisions in Congress and is expected to be voted on before year’s end.

Political and Economic Drivers Behind Stablecoin Legislation

Brooks and other members of Trump’s advisory team see the Clarity Act as more than just a regulatory reform—it’s a strategic move.

“Stablecoins are the next phase of dollar internationalization,” Brooks said. “As China promotes digital yuan and the EU advances MiCA, the U.S. must leverage the Clarity Act to combine Web3 innovation with financial sovereignty.”

Within the Republican framework, cryptocurrencies are viewed as “financial innovations of the free market,” rather than high-risk assets requiring heavy regulation. This contrasts sharply with the Democratic-led SEC’s regulatory approach.

If Trump wins the 2028 presidential election, his administration is highly likely to prioritize the Clarity Act as a key policy to loosen regulations on the U.S. crypto industry.

Industry Insights: Stablecoins as a 2025 Regulatory Focus

Industry experts generally agree that regulatory clarity for stablecoins could be a turning point for the U.S. crypto market’s recovery. A joint study by Ripple and BCG projects the stablecoin market could surpass $5 trillion by 2030, accounting for 8% of global payment transactions.

Coinbase policy chief Faryar Shirzad noted, “Current regulatory uncertainty around stablecoins hampers collaboration among banks, payment firms, and Web3 companies. Once the Clarity Act passes, USD stablecoins like USDC, PYUSD, and RLUSD will gain legal recognition, positioning the U.S. to compete with the EU’s standards.”

Moreover, if enacted, the bill would institutionalize compliance pathways for DeFi and Web3 financial services, providing a secure channel for global capital flows.

Web3 Companies’ Expectations and Challenges

While many in the industry are optimistic about the bill’s passage, some entrepreneurs worry that excessive regulation could stifle innovation. Web3 developers argue that the Clarity Act should strike a balance between compliance and creativity.

Laura Sanders, policy lead at Ava Labs, said, “Overly strict compliance requirements could exclude early-stage projects and cause the U.S. to miss out on the next wave of blockchain infrastructure innovation.”

However, she also acknowledged, “Having a clear regulatory framework is far better than operating in gray areas.”

The core debate centers on how to enable stablecoins to drive payment revolutions without becoming sources of systemic risk.

International Perspective: U.S. vs. Global Stablecoin Regulation

The EU has already implemented the MiCA framework, while Japan and Singapore have introduced their own stablecoin standards. Hong Kong’s HKMA has launched the “Fintech 2030” initiative, emphasizing stablecoin settlement and tokenized deposits.

In this context, passing the Clarity Act could re-establish U.S. leadership in global crypto regulation. Companies like Ripple, Circle, and PayPal stand to benefit from clearer policies, encouraging more institutions to adopt dollar-backed stablecoins.

This also signals that the U.S. is entering a geopolitical competition with the EU and China over digital currencies.

Future Outlook: Potential Impact of the Clarity Act

In the short term, the bill’s passage would boost confidence in the U.S. crypto market and could attract capital into Bitcoin (BTC), Ethereum (ETH), and related tokens.

Long-term, the legislation could:

• Set the world’s most transparent stablecoin regulatory standards;
• Attract traditional financial institutions into Web3;
• Promote cross-border settlement and tokenized assets;
• Lay legal and technological foundations for the future digital dollar (CBDC).

If the 2021 bull market was driven by speculation, the next cycle around 2025 is likely to be fueled by regulatory clarity and institutional innovation.

Conclusion

The “Clarity for Payment Stablecoins Act” is more than just a regulatory bill—it’s a strategic contest over America’s financial sovereignty. Its fate will influence the dollar’s position in the digital age.

Regardless of government shutdowns, financial innovation will not stop. In the coming years, the U.S. may once again become a global hub for crypto, and this transformation could very well begin with the enactment of the Clarity Act.