U.S. President Donald Trump announced on Wednesday that he will lead efforts to establish a 'future-proof' digital asset market structure that cannot be undone by opponents. According to reports from The Block, Trump wrote on Truth Social that former Securities and Exchange Commission Chair Gary Gensler and the 'anti-crypto army' drove bitcoin, crypto perpetuals, and innovation offshore. The president declared that 'The new Frontier of Finance is being Built in America, and 'TRUMP' will NEVER let Crypto down!' Trump intensified his administration's push for durable U.S. crypto regulation on May 27, arguing that America has become the global center for digital asset innovation. He claimed that his administration reversed the offshore shift and brought builders and entrepreneurs back to U.S. markets. As per AMBCrypto, Trump has fulfilled his pro-crypto pledges through initiatives including the Strategic Bitcoin Reserve, the GENIUS Act, and recent support for the Commodity Futures Trading Commission in legal battles over prediction markets worth billions of dollars.
Senator Cynthia Lummis has issued a stark warning about the consequences of CLARITY Act stalling in Congress. According to reports from The Block, Lummis posted on X that if the CLARITY Act fails to clear Congress in this session, American software developers will face prosecution simply for publishing code. She called the scenario a descent into ''regulatory dark ages'', a direct indictment of the SEC's regulation-by-enforcement posture that has defined U.S. crypto policy for the past three years. The stakes, in Lummis's framing, are not abstract: this is the last realistic legislative window until at least 2030. Crypto advocacy groups have been running an all-out lobbying campaign to sustain momentum, arguing that the bill represents the industry's only near-term path to a defined market structure framework.
The CLARITY Act's core function is jurisdictional clarity, formally defining ancillary assets - the category covering most altcoins - and establishing which digital tokens linked to investment contracts are not securities. As reported by The Block, the bill would require the SEC to create Regulation DA, exempting certain ancillary-asset offerings from full registration if they raise $75 million or less over 4 years. Beyond registration thresholds, the legislation would direct the SEC to modernize its investment contract definitions and set examination standards targeting illicit finance, replacing informal supervisory pressure and guidance letters with binding rulemaking. The legislation would also address stablecoins through 1:1 reserve mandates, a provision Lummis frames as critical to preserving the digital dollar's credibility internationally.
Trump pledged to introduce legislation that would codify the crypto market structure, providing clear legal definitions for digital assets and making it harder for future regulators to reverse pro-crypto policies. As reported by BitcoinWorld, if enacted, the proposed legislation could provide legal clarity on whether cryptocurrencies are securities or commodities, potentially reducing the SEC's enforcement reach. This would likely boost investor confidence and encourage domestic innovation in decentralized finance (DeFi) and tokenized assets. However, consumer protection advocates warn that overly permissive rules could increase fraud and market manipulation risks. The exact details of the proposed legislation remain unclear, and it will require bipartisan support in Congress to become law.
Despite recent progress, analysts have indicated that the Clarity Act remains far from becoming law. According to The Block, Benchmark analyst Mark Palmer noted that the legislation will likely need broader Democratic support to become law. TD Cowen researchers said earlier this week that the crypto market structure bill is unlikely to pass this year, as recent conflict-of-interest concerns surrounding Trump make the legislation politically harder for Democrats to back. Jaret Seiberg from TD Cowen's Washington Research Group explained that it makes it politically hard for a Democrat to back a crypto bill unless it contains conflicts of interest standards that apply to the President. The remarks come amid a broader political realignment on cryptocurrency in Washington, with Trump's latest statements signaling a sharp reversal from Gensler's aggressive enforcement approach that critics claimed stifled innovation and drove companies to friendlier jurisdictions. As per AMBCrypto, the CLARITY Act's approval odds currently stand at 56%, indicating that even the public is not as hopeful about its passage.
