Donald Trump announced his intention to create a "future-proof" digital asset regulatory framework by supporting the Digital Asset Market Clarity Act (CLARITY) currently under Senate consideration. He stressed that the law would protect the cryptocurrency industry from attempts by future administrations to undermine established regulations.
The CLARITY Act has faced months of obstacles since clearing the House of Representatives, including government shutdowns, resistance from the crypto and banking sectors, and conflicts of interest linked to Trump and his family’s involvement in crypto ventures. These ventures include memecoin projects, a USD stablecoin linked to the platform World Liberty Financial, and a Bitcoin mining company.
Although key Senate committees have made progress on the bill, it still requires approval from the full Senate, where Republicans hold a narrow majority but need Democratic support. Some senators have expressed reluctance to back the bill unless it includes stringent ethics provisions to address concerns surrounding the Trump family’s crypto affiliations.
Market reaction to Trump’s statement was immediate, with Bitcoin’s price dipping below $73,000 shortly after his pledge. This movement follows similar remarks by SEC Chair Paul Atkins, also selected by Trump, who emphasized efforts to create flexible regulations that can withstand future policy shifts affecting cryptocurrencies.
Trump’s recent social media activity also touched on the jurisdiction over prediction markets, reinforcing CFTC Chair Michael Selig’s position—another Trump appointee—that the Commodity Futures Trading Commission has exclusive authority over platforms like Kalshi and Polymarket. Notably, Donald Trump Jr. serves as an adviser to both prediction markets, which face legal challenges from state regulators for allegedly offering unlicensed betting services.