WASHINGTON – The crypto industry has long sought a clear regulatory framework in the United States, pinning hopes on the passage of the Clarity Act. But as that legislation stalls in the Senate, a different path toward legitimacy is emerging, one largely shaped by the appointments of Donald Trump. The former president’s choices to lead the Securities and Exchange Commission and the Commodity Futures Trading Commission are quietly reshaping the landscape for digital assets, potentially offering the industry the regulatory breathing room it craves – even without Congressional action.
The White House set a March 1st deadline for the banking industry and crypto firms to reach a deal on stablecoin yield, a move intended to clear the way for the Clarity Act. However, the Senate has repeatedly missed deadlines to move the bill forward, leaving the future of the legislation uncertain. Despite this legislative gridlock, the SEC and CFTC, now led by Trump appointees, are actively pursuing rulemaking that could provide much-needed clarity.
While the Clarity Act was passed by the House seven months ago, the focus is shifting to the actions of the regulatory agencies. The appointment of Paul Atkins as SEC chair is proving to be a pivotal moment. Atkins, a veteran of the SEC who served under three different chairs in the 2000s, is known for his ability to craft regulations that can withstand legal challenges. Trump further solidified this approach by appointing a deputy of Atkins to lead the CFTC, aiming for a harmonized regulatory approach across markets. The industry’s success now hinges, in large part, on avoiding another major collapse like that of FTX.
The core of Trump’s crypto legacy, in two words, is Paul Atkins. His influence extends beyond simply easing the regulatory burden; it’s about fundamentally changing how the SEC approaches digital assets.
Not His First Rodeo
Paul Atkins’s experience at the SEC spans six years, during which he served under multiple chairmen. Since leaving the commission, he has advised the Chamber of Digital Commerce and Securitize, demonstrating a long-standing engagement with the crypto industry. He was sworn in as SEC chair in April 2025, and shortly thereafter, stated the agency’s authority to establish rules tailored to the crypto industry’s needs.
Atkins has consistently maintained that the SEC can and will act, even without novel legislation from Congress. Speaking to reporters, he affirmed his staff’s ability to move forward with rulemaking regardless of Congressional delays, signaling a proactive stance toward regulation. This confidence stems from a deep understanding of the SEC’s existing authority.
Harmonization is Key
A critical aspect of the new approach is the alignment between the SEC and the CFTC. Under Gary Gensler, the previous SEC chair, there was a notable disconnect with Rostin Benham, the CFTC’s former chief. Benham repeatedly urged Congress to take action, while Gensler argued that existing rules were sufficient. Gensler believed only Bitcoin fell outside of his scrutiny, while Benham held a more nuanced view.
The appointment of Michael Selig as CFTC chair, following a shift in Trump’s initial plans, is intended to bridge this gap. Selig was sworn in at the end of December, and both agencies are now expected to operate in concert. An official memorandum of understanding delineating responsibilities, reminiscent of the historic Shadd-Johnson accord of 1981, is anticipated soon. This collaboration is crucial for providing founders with the confidence they necessitate and preventing jurisdictional disputes.
Project Crypto and the Path Forward
Industry observers anticipate that “Project Crypto,” as it’s been informally dubbed, will yield draft rules this fall, developed in consultation between the SEC and CFTC. These rules are expected to be finalized by next spring, following a period of public comment. This would mark the first time an administration has actively written rules specifically designed for decentralized financial networks.
Under these new rules, exchanges like Kraken, Coinbase, and Crypto.com could potentially register all their operations with a regulatory agency and state supervision. New enterprises could also raise funds through token sales, with tokens potentially enjoying rights previously unavailable during the era of regulation by enforcement, such as the ability to distribute revenue. Provided the rules are carefully crafted to withstand legal challenges, the industry could have several years of growth before any potential rollback.
While the Trump family’s ventures into memecoins, a stablecoin, and bitcoin mining may have created political headwinds, the regulatory groundwork laid by Atkins and Selig could prove to be the more lasting legacy. Even as Congress remains divided, agency staff are actively writing rules. Both SEC and CFTC leaders announced today several crypto policies are forthcoming, suggesting a proactive approach to regulation.
The lobbyists may ultimately secure the legislation they desire, but it’s increasingly likely that crypto will achieve mainstream acceptance without Congressional intervention. Trump’s appointment of Paul Atkins may have already provided the industry with the legal space it needs to reach its full potential.
Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute financial or legal advice.
The SEC and CFTC are expected to release draft rules for public comment this fall. Stay tuned for further updates as this story develops.
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