Trump Presses Congress to Pass Clarity Act as SEC and CFTC Pursue Separate Crypto Rules
Key Takeaways
- •Trump pressed lawmakers to approve the Clarity Act once they return from recess and to resolve ethics issues that are delaying bipartisan support.
- •Coinbase, a16z, Ripple, and Kraken executives met with Commerce Secretary Howard Lutnick to discuss jobs, growth, and bringing crypto firms back to the United States.
- •CFTC Chairman Mike Selig said passing the Clarity Act would help prevent what he described as abusive enforcement and noted the agency could use existing authority if Congress does not act.
- •The SEC proposed Regulation Crypto Assets, which would allow some token offerings under specified limits without full registration and would create a conditional safe harbor after managerial efforts end.
- •SEC commissioners approved the proposal through a seriatim process outside a public meeting, and the agency’s planned meeting had been canceled the previous Friday.
Washington saw renewed crypto policy activity this week as President Donald Trump urged Congress to pass the Clarity Act, pressing lawmakers to resolve their ethics disputes and approve the bipartisan bill when they return from the August recess.
The White House meeting came as the SEC proposed its first crypto rulemaking framework and the CFTC prepared possible rules of its own should Congress fail to act, underscoring how the policy debate is moving on parallel tracks in Washington. For crypto firms, the timing matters because the outcome could shape whether market rules emerge from Congress or through agency action.
Crypto Leaders Discuss Ethics Hurdle
Trump told crypto executives to pass a “fair version” of the bipartisan bill when lawmakers return next month, pointing to ethics provisions from Sens. Thom Tillis and Ruben Gallego that remain an obstacle to bipartisan agreement.
Before Trump’s remarks, Coinbase CEO Brian Armstrong, a16z Managing Partner Chris Dixon, Ripple CEO Brad Garlinghouse, and Kraken co-CEO Arjun Sethi met with Commerce Secretary Howard Lutnick. According to two sources familiar with the meeting, the executives discussed jobs, economic growth, and bringing crypto companies back onshore. They also discussed ethics concerns and possible White House support for a bipartisan agreement. Another source said efforts are underway to persuade Trump’s allies to accept parts of the proposed ethics deal.
Meanwhile, CFTC Chairman Mike Selig addressed the Clarity Act during Thursday’s Innovation Advisory Committee meeting. He said passing the bill would prevent another Gary Gensler from conducting what he called “lawfare.”
SEC and CFTC Prepare Separate Paths
Selig also said the CFTC could use its existing authority if the Clarity Act continues to stall, noting that agency staff have already begun exploring rules for crypto asset markets. That sets up a potentially important fallback: if Congress does not move quickly, regulators are still positioning themselves to define parts of the market under current law.
The SEC separately proposed Regulation Crypto Assets on Tuesday. The framework would permit certain offerings of up to $5 million over four years, or $75 million annually, without full registration. It would also create a conditional safe harbor after an issuer’s essential managerial efforts end. Additionally, the proposal would preempt some state securities registration requirements.
Notably, SEC commissioners approved the proposal individually through a “seriatim” process, and an SEC spokesperson confirmed the votes occurred outside a public meeting. The SEC had canceled its planned meeting the previous Friday, citing an unforeseen scheduling issue. Crypto in America reported that White House and Wall Street concerns contributed to the cancellation. Semafor later reported that a White House mix-up also contributed to the decision, with officials reportedly unclear about which SEC proposal would advance.
