Trump Regulators Establish Crypto Rules After Legislation Stalls

Regulators under Donald Trump are establishing cryptocurrency policies to provide industry clarity after the Clarity Act, a sweeping piece of U.S. legislation, stalled in Congress. The administration is utilizing federal agencies to fill the legislative void, though industry executives warn that agency-led rules lack the permanence of law and remain vulnerable to court challenges or future administrative reversals.

The United States Securities and Exchange Commission is developing a rule to exempt specific token offerings from securities regulations. Simultaneously, the United States Commodity Futures Trading Commission has already approved perpetual bitcoin futures. These moves face potential opposition from Wall Street firms, including CME Group, which sued the CFTC in June over the approval of those futures.

Further obstacles include the November midterm elections. If Democrats regain control of the House of Representatives, the administration may face increased scrutiny and demands for more stringent safeguards against money laundering and fraud.