Two U.S. financial regulators, led by Trump-appointed officials, plan to independently develop cryptocurrency regulations while the CLARITY Act bill remains stalled in the Senate.
Lawmakers have only about 14 working days after returning from recess to pass the CLARITY Act before the October elections.
What Wording Options Are Proposed for the CLARITY Act?
The passage of the CLARITY Act, the crypto industry's top legislative priority, has been delayed another month after the Senate went on a five-week recess without voting on it.
Senate Majority Leader John Thune filed a cloture motion, scheduling a procedural vote for September 15, which requires 60 votes; failure of this vote could effectively end the bill. Lawmakers have only 14 working days from their return until the October election recess.
The bill faces opposition from Democrats who want stricter anti-money laundering and ethics measures, and in June, CME Group sued the Commodity Futures Trading Commission (CFTC) over its approval of perpetual cryptocurrency futures.
In July, Republicans amended the bill to prohibit the president and other federal officials from issuing or sponsoring cryptocurrency, with stipulated fines of up to $250,000 per day. However, the two parties still disagree on who should enforce this ban: the Department of Justice or state attorneys general.
How the Trump Administration Is Advancing Cryptocurrency Regulation
As a workaround to overcome this delay, the Securities and Exchange Commission (SEC) is expected within weeks to propose a rule that would exempt some token offerings from securities requirements.
Meanwhile, the Commodity Futures Trading Commission (CFTC) plans to include cryptocurrencies on the agenda of an industry event later this week.
Meanwhile, it is reported that a meeting with executives from the cryptocurrency, prediction markets, and traditional finance sectors is expected at the White House on Wednesday.
Nate Geraci, president of Dius Wealth, wrote on X that expected attendees include SEC Chairman Paul Atkins, Acting CFTC Chairman Michael Selig, as well as leaders from Coinbase, Ripple, Polymarket, and Gemini, alongside Wall Street representatives from companies such as Nasdaq, the New York Stock Exchange, CME Group, and the Depository Trust and Clearing Corporation (DTCC).
The meeting takes place a day before a CFTC meeting , which includes representatives from companies operating in cryptocurrency, gambling, finance, and prediction markets.
Why Do Industry Representatives Still Want Such a Law Passed?
Company executives view SEC or CFTC rules on cryptocurrencies favorably, but rules crafted by regulators can be challenged in court, and a future administration could overturn them. The Trump administration has already overturned dozens of SEC rules and consumer protection laws enacted under Biden. Former SEC Chairman Gary Gensler also sued dozens of crypto companies during the Biden administration.
On August 14, the Securities and Exchange Commission (SEC) canceled a meeting where it was scheduled to vote on the proposal for its first official crypto-specific regulation, known as the "Crypto Regulation"
The proposal outlined three ways for companies to offer tokens, including one allowing startups to raise about $5 million without full SEC registration, and another allowing raises of up to $75 million.
The Securities and Exchange Commission (SEC) canceled the meeting scheduled to vote on this proposal because officials feared that the SEC independently advancing this issue could reduce the chances of the CLARITY Act passing in Congress.
However, with SEC Commissioner Hester Peirce, who heads the agency's crypto task force, set to leave her post in November 2026, there is additional pressure on the SEC to complete the work before her departure.
The Securities and Exchange Commission (SEC) also postponed another plan, called the "innovation exemption," which would allow crypto companies to issue and trade digital versions of stocks and bonds without going through the full SEC registration process.
However, traditional financial organizations, such as the Securities Industry and Financial Markets Association, have opposed this system, arguing that such significant changes should go through proper rulemaking procedures, not through exemptions that bypass the normal process.
