How Trump is pushing Congress to pass crypto market legislation

Clarity and digital assets: How Trump is pushing Congress to pass crypto market legislation
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Clarity and digital assets: How Trump is pushing Congress to pass crypto market legislation

Economies.com
2026-08-20 17:02 UTC

US President Donald Trump hosted a group of senior cryptocurrency industry executives at the White House on Wednesday, urging Congress to move forward with the Clarity Act, legislation designed to regulate the digital asset market, in a move that reflects the administration’s push to establish the United States as a leading global hub for cryptocurrencies and compete with China in the sector.

The meeting came as the crypto market enjoyed strong momentum, alongside improving liquidity conditions in financial markets after the US Treasury announced an increase in buybacks of longer-dated government bonds, helping boost demand for risk assets.

Trump pushes for passage of the Clarity Act

Trump told attendees that Congress should take the next step by passing the Clarity Act, describing the legislation as a strong and orderly framework that would help the United States maintain its lead over China and other competitors in financial technology.

Trump said the United States is still at the “real beginning of a revolution” in finance, referring to the growing role of digital assets and related technologies in the financial system.

The meeting was attended by some of the crypto industry’s most prominent executives, including Coinbase CEO Brian Armstrong, Gemini founders Tyler and Cameron Winklevoss, Kraken co-CEO Arjun Sethi, Robinhood Markets CEO Vlad Tenev, and Intercontinental Exchange CEO Jeffrey Sprecher.

Also attending were US Securities and Exchange Commission Chair Paul Atkins, Commodity Futures Trading Commission Chair Michael Selig, and White House crypto adviser Patrick Witt.

The Clarity Act aims to establish clearer rules for the market, particularly by determining which digital assets should be classified as securities and which should be treated as commodities, while also defining the regulatory authority responsible for overseeing each category.

Crypto companies view passage of the law as an essential step toward providing a stable regulatory environment that can support investment and growth, rather than relying on rules issued separately by regulators that could change with a new administration or be challenged in court.

The US House of Representatives passed a version of the bill last year with bipartisan support, but the legislation faced obstacles in the Senate, where Democrats have pushed for stricter restrictions preventing government officials, including the president, from personally profiting from cryptocurrency activities.

The bill faces an important procedural deadline in the Senate in September, while partisan disagreements continue to threaten its chances of passage.

Regulation advances despite legislative delays

With congressional action stalled, US regulators have begun taking independent steps to provide greater clarity for the market.

The Securities and Exchange Commission has proposed new rules that would exempt certain digital asset offerings from registration requirements, making it easier for crypto companies to issue tokens and raise capital.

The proposals would allow companies to raise as much as $75 million annually without registering with the SEC, compared with current rules that impose registration requirements on companies seeking to raise funds from investors under certain circumstances.

The Commodity Futures Trading Commission is also preparing to discuss crypto regulation at a meeting with industry representatives as regulators attempt to fill the gap created by slow congressional action.

Supporters say the new regulatory measures could give the industry more room to grow in the near term, but companies still view legislation passed by Congress as more durable because it would reduce the risk of these policies being reversed under a future administration.

Bitcoin and crypto-related stocks benefit

The positive tone surrounding the White House meeting quickly spread to markets, with Bitcoin rising around 5% to approximately $71,880, while Ethereum jumped more than 9% to around $2,288.91.

Crypto-related stocks also rallied in US premarket trading. Coinbase shares climbed around 8%, while Strategy rose 9.4%, extending a 13% gain in the previous session, and Mara Holdings advanced around 5.5%.

The Hyperliquid token also surged around 25% over 24 hours after Trump said the Commodity Futures Trading Commission was working to bring decentralized trading platform Hyperliquid into the United States under a framework fully compliant with US regulations.

Hyperliquid Strategies shares jumped around 30% in the previous session before adding another 7.5% in Thursday premarket trading.

Support for cryptocurrencies was not driven solely by political and regulatory developments. Markets also benefited from the US Treasury’s announcement that it would increase buybacks of 20- and 30-year government bonds.

The announcement pushed bond yields lower, boosting demand for riskier assets including cryptocurrencies and related equities.

Political disputes and conflict-of-interest concerns weigh on the bill

Despite Trump’s political support for the cryptocurrency industry, the Clarity Act continues to face significant obstacles, most notably disagreements over restrictions on government and political officials who may have financial interests in digital assets.

Democrats, along with some Republicans, are calling for provisions preventing officials, including President Trump, from personally benefiting from cryptocurrency ventures while holding public office.

Pressure has increased amid concerns over links between the Trump family’s business interests and policies adopted by the administration.

Last week, a Treasury Department office granted preliminary approval to a company affiliated with World Liberty Financial for a limited banking charter. The company is linked to President Trump and his sons, who hold a substantial stake in the business.

The charter would allow the company to issue its own US dollar-backed stablecoin rather than relying on BitGo for the process, while still preventing it from accepting retail deposits or providing loans.

Democratic Senator Elizabeth Warren of Massachusetts strongly criticized the move, describing the potential banking charter as a blatant conflict of interest and announcing plans to introduce legislation aimed at blocking it.

White House spokeswoman Anna Kelly denied that any conflict of interest exists, saying the administration is acting in the public interest and rejecting the allegations as a continuation of Democratic criticism of Trump, his family and his administration.

Recent polls have also shown that a majority of Americans believe Trump and his family have benefited improperly from the cryptocurrency sector since his return to power, and that some of his policy decisions may be influenced by private business interests, allegations denied by Trump and the White House.

Trump continues reshaping US crypto policy

The White House meeting marks the latest step in a major transformation of Trump’s stance toward the cryptocurrency industry. After previously expressing skepticism toward the sector, the US president made support for digital assets a central part of his economic platform during the 2024 election campaign and after returning to the White House.

Trump also previously signed the GENIUS Act, which established a regulatory framework for US dollar-backed stablecoins, in what was considered one of the most significant pieces of US legislation targeting the sector.

At the same time, the Securities and Exchange Commission ended several lawsuits and enforcement actions over the past year against major cryptocurrency companies, including Coinbase and Kraken, reflecting a clear shift away from the more aggressive regulatory approach pursued in previous years.

Crypto companies are now seeking to turn those political and regulatory changes into a permanent legal framework through passage of the Clarity Act, ensuring that the new rules remain in place even if the US administration changes in the future.

While Trump’s support continues to provide a strong boost to the sector and financial markets, the legislation’s future will depend on whether Republicans and Democrats can reach a compromise over conflict-of-interest rules and regulatory oversight.

In the meantime, federal agencies continue to expand rules governing digital assets, while cryptocurrencies and related stocks benefit from improving liquidity and a renewed appetite for risk assets.

Ethereum jumps 11% as Trump pushes Congress to pass crypto legislation

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2026-08-20 19:09 UTC

Most cryptocurrencies rallied on Thursday amid broad-based buying across the market and technical purchases by investors following a meeting held by Trump with officials aimed at urging the US Congress to approve the Clarity Act regulating the cryptocurrency market.

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Source: www.economies.com