During the Biden administration, the U.S. government displayed a marked disdain for cryptocurrencies, evidenced by numerous crypto investigations and heavy fines for collapsed projects. However, with Donald Trump assuming office, a shift in approach seems apparent as the White House announces the formation of a so-called “dream team” for cryptocurrency regulations.
Formation of the Cryptocurrency Dream Team
David, Trump’s advisor on artificial intelligence and cryptocurrency, is at the helm of the administration’s crypto policies. Recently, the appointment of Michael Selig as the Chairman of the Commodity Futures Trading Commission (CFTC) completed this team. David Sacks announced the formation of this team via a statement on X, expressing enthusiasm about Selig’s leadership during this pivotal phase for crypto assets. Together with SEC Chairman Paul Atkins, President Trump aims to set clear regulatory guidelines for the 21st century.
Selig expressed gratitude upon his confirmation, emphasizing the unique moment as diverse new technologies and platforms surface, alongside record levels of individual participation in commodity markets. Congress is poised to send a digital asset market structure law, aiming to position the U.S. as the global crypto capital, to the President’s desk. Selig takes pride in overseeing the stability and security of America’s commodity derivative markets during this rapid transformation. Under his leadership, CFTC is set to overcome significant challenges and ensure future innovations originate within America.
The CLARITY Act
The GENIUS Act has been approved and enacted, while the upcoming cryptocurrency law, known as CLARITY, is yet to progress. Defined as the Responsible Financial Innovation Act, CLARITY promises transparency in the crypto market but was delayed due to the holiday season. The Senate Banking Committee is expected to review CLARITY before a vote in January.
Concerns surrounding DeFi are causing hesitation among senators. Despite this, Trump advocates for the passage of the law. If the Senate approves by March, then the House representatives might merge similar legislation with CLARITY to create a unified law. The final versions are slated for approval by June, and Trump is expected to see the law before July or August.
In a scenario where the timeline advances rapidly, CLARITY could become law before the midterm elections in 2026. However, if postponed until after the elections, and if Trump loses majority in the Senate and House, the law could be indefinitely shelved, or it might be replaced by a restrictive version aimed more at limitations than regulations. Trump’s commitment to cryptocurrency regulation is evident from how he navigates the CLARITY timeline.
