Trump Regulators Fill Void as Crypto Legislation Stalls
Crypto companies have spent hundreds of millions of dollars lobbying for legislation they say will provide regulatory clarity, but that effort has stalled. As a result, Trump's crypto-friendly regulators are stepping in to fill the void.
The Securities and Exchange Commission (SEC) is expected to advance a rule exempting certain token offerings from securities rules, while the Commodity Futures Trading Commission (CFTC) will discuss crypto regulation at an industry gathering. This move comes as Congress has been unable or unwilling to pass the Clarity Act, which aims to define which tokens are securities versus commodities.
Industry experts warn that regulations without legislation will be vulnerable to court challenges and changes in administrations, creating lingering hazards for the crypto industry. Some executives even fear a future administration could install 'crypto hawks' like former SEC Chair Gary Gensler, who sued dozens of crypto companies under Biden.