President Donald Trump on Thursday called on Congress to pass the Crypto Clarity Act, a proposed bill designed to create a comprehensive regulatory framework for digital assets in the United States.
In a statement posted on Truth Social, Trump said the legislation would provide much-needed regulatory certainty for cryptocurrency businesses and investors. The White House did not immediately provide further details on the specifics of the proposed bill or a timeline for its introduction.
The Crypto Clarity Act would establish clear definitions for different types of digital assets and assign regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, according to industry sources familiar with the proposal.
What the Bill Would Do
The proposed legislation aims to resolve longstanding questions about which digital assets qualify as securities and which should be regulated as commodities. This distinction has been at the centre of numerous enforcement actions by the SEC under previous administrations.
Under the bill, sufficiently decentralised cryptocurrencies would be classified as commodities and regulated by the CFTC. Digital assets that meet the traditional definition of an investment contract would remain under SEC oversight.
The bill would also establish registration requirements for cryptocurrency exchanges and introduce consumer protection standards for crypto custody providers.
Industry Response
The crypto industry has long sought clearer regulatory guidelines in the United States. Coinbase, Ripple, and the Blockchain Association have all advocated for legislation that would define regulatory boundaries rather than relying on enforcement actions.
Kristin Smith, chief executive of the Blockchain Association, said in a statement that the industry welcomes efforts to establish a transparent regulatory framework. She added that clarity would help US companies compete globally while protecting consumers.
However, consumer advocacy groups have warned that overly permissive regulation could expose retail investors to fraud and market manipulation.
Congressional Path Unclear
It remains unclear whether the bill has sufficient support in Congress to advance. The Republican-controlled House of Representatives has generally been more favourable to crypto-friendly legislation, while Senate Democrats have expressed concerns about consumer protection gaps in previous proposals.
Representative Patrick McHenry, chairman of the House Financial Services Committee, told reporters he had not yet seen the final text of the bill but said he was open to working with the White House on digital asset legislation.
Senator Elizabeth Warren, a vocal critic of the crypto industry, said any legislation must include strong anti-money laundering provisions and protections against market abuse.
Global Context
The United States has lagged behind other jurisdictions in establishing comprehensive crypto regulation. The European Union implemented its Markets in Crypto-Assets regulation last year, while the United Kingdom and Singapore have introduced licensing frameworks for digital asset businesses.
The lack of regulatory clarity in the US has prompted some crypto companies to establish operations in more welcoming jurisdictions. Several firms have cited regulatory uncertainty as a factor in decisions to expand overseas rather than domestically.
The Trump administration has signalled a more industry-friendly approach to crypto regulation compared to the previous administration, which pursued aggressive enforcement against several major exchanges and token issuers.