Trump Regulators Step In to Fill Void Left by Stalled US Crypto Legislation
With US crypto legislation stalled, President Donald Trump's regulators are set to create rules for the industry. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will give the digital asset sector regulatory clarity it has long argued it lacks.
The SEC is expected to advance a rule exempting certain token offerings from securities rules in coming weeks, while the CFTC will discuss crypto regulation at an industry gathering this week. The Trump administration's regulators have reversed Biden-era crypto policies and voiced support for the industry.
Industry experts say only Congress can create a lasting framework, but the Clarity Act aims to define which tokens qualify as securities versus commodities. Without legislation, regulations will be vulnerable to the shifting political climate and court challenges.
Democrats generally favor tougher safeguards against money laundering, fraud, and conflicts of interest than Republican lawmakers, which could become an obstacle for the SEC and CFTC rulemakings.