Trump Regulators Step In as US Crypto Legislation Stalls
As US crypto legislation stalls in Congress, President Donald Trump's regulators are moving to fill the void. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will write favorable rules for the digital asset industry, but these efforts could be overturned by future administrations.
The SEC is expected to advance a rule exempting certain token offerings from securities rules in the coming weeks. The CFTC will discuss crypto regulation at an industry gathering this week.
Industry executives fear that regulations without legislation will be vulnerable to the shifting political climate and court challenges, creating lingering hazards for the crypto industry. They point to the Trump administration's rollback of dozens of SEC and consumer watchdog policies introduced under former President Joe Biden as a risk.
The Clarity Act aims to define which tokens qualify as securities versus commodities, but without legislation, regulations will be temporary.