- Trump urged lawmakers to resolve ethics disputes and pass the Clarity Act when Congress returns from its August recess.
- The CFTC is exploring crypto market rules under existing authority if the Clarity Act remains stalled in Congress.
- The SEC proposed exemptions for crypto fundraising up to $5 million over four years or $75 million annually without full registration.
Washington had renewed crypto policy activity this week as President Donald Trump urged Congress to pass the Clarity Act. The White House meeting came as the SEC proposed its first crypto rulemaking framework and the CFTC prepared possible rules if Congress fails to act. Industry executives and regulators addressed the legislation and broader crypto market rules.
Crypto Leaders Discuss Ethics Hurdle
Trump told crypto executives to pass a “fair version” of the bipartisan bill when lawmakers return next month. He referenced ethics provisions from Sens. Thom Tillis and Ruben Gallego, which remain an obstacle to bipartisan agreement.
Before Trump’s remarks, Coinbase CEO Brian Armstrong, a16z Managing Partner Chris Dixon, Ripple CEO Brad Garlinghouse, and Kraken co-CEO Arjun Sethi met Commerce Secretary Howard Lutnick.
According to two sources familiar with the meeting, the executives discussed jobs, economic growth, and bringing crypto companies back onshore. They also discussed ethics concerns and possible White House support for a bipartisan agreement. Another source said efforts are underway to persuade Trump’s allies to accept parts of the proposed ethics deal.
Meanwhile, CFTC Chairman Mike Selig addressed the Clarity Act during Thursday’s Innovation Advisory Committee meeting. He said passing the bill would prevent another Gary Gensler from conducting what he called “lawfare.”
SEC and CFTC Prepare Separate Paths
Selig also said the CFTC could use existing authority if the Clarity Act continues to stall. He said agency staff have already begun exploring rules for crypto asset markets. The SEC separately proposed Regulation Crypto Assets on Tuesday.
The framework would permit certain offerings up to $5 million over four years or $75 million annually without full registration. It would also create a conditional safe harbor after an issuer’s essential managerial efforts end.
Additionally, the proposal would preempt some state securities registration requirements. Notably, SEC commissioners approved the proposal individually through a “seriatim” process. An SEC spokesperson confirmed the votes occurred outside a public meeting.
The SEC had canceled its planned meeting the previous Friday, citing an unforeseen scheduling issue. Crypto in America reported White House and Wall Street concerns contributed to the cancellation.
Semafor later reported a White House mix-up also contributed to the decision. Officials were reportedly unclear about which SEC proposal would advance.
