U.S. CFTC chief puts staff on notice to create crypto regulations if Clarity Act fails

Donald Trump addressed the nation from the White House on Wednesday, advocating for the passage of the Digital Asset Market Clarity (CLARITY) Act to secure the US's position ahead of China. Trump continued his push for the bill's passage as the Senate remains in recess. In a press conference with crypto executives like Coinbase CEO Brian Armstrong and Gemini co-founders Cameron and Tyler Winklevoss, Trump urged members of Congress to pass a "fair version" of the CLARITY Act to maintain US leadership in the crypto market.

The Senate has been stalled on the bill for months due to concerns about tokenized equities, stablecoin rewards, and potential conflicts of interest related to the Trump family's involvement in the crypto industry.

Coinbase CEO Armstrong, speaking after Trump and US regulatory officials, stated that the bill would make US crypto policies "durable into the future," potentially garnering "more than 60 votes" in the Senate once a cloture motion is considered on September 18. Trump praised the bill for its bipartisan support, citing the late Senator Lindsey Graham as a significant supporter. Graham's death in July prompted Trump to push for CLARITY's passage in Graham's honor.

The meeting occurred a day before the Commodity Futures Trading Commission (CFTC) was set to hold an Innovation Advisory Committee meeting. CFTC Chair Michael Selig indicated that the agency would explore crypto regulations during the meeting, while Congress returns to session in another month. Concurrently, the Securities and Exchange Commission proposed crypto rules offering companies a safe harbor from tokens being treated as "investment contracts" and providing certain exemptions for token issuance. This story is ongoing and will be updated with further developments.