Trump Urges Congress to Pass Clarity Act for Cryptocurrency Regulation

Former US President Donald Trump has urged Congress to pass the Clarity Act, a bipartisan legislative proposal aimed at establishing clear regulatory guidelines for the cryptocurrency sector. Speaking at the White House on Wednesday, August 19, 2026, Trump emphasized the importance of the bill for maintaining America’s leadership in digital asset innovation.

The President convened crypto industry leaders, including executives from Coinbase, Kraken, and Robinhood, alongside regulators from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). He lauded the industry’s efforts in fostering commercial markets within the US, stating the Clarity Act would open doors for future innovation and help the country stay ahead of rivals like China.

This move is particularly pertinent for businesses and investors in Asia who closely monitor global regulatory trends in the digital asset space. The region has seen its own efforts to clarify crypto regulations, with countries like Singapore and Hong Kong actively working on frameworks to attract and govern digital asset businesses.

Aims of the Clarity Act

The Digital Asset Market Clarity Act seeks to provide a definitive statutory framework for cryptocurrencies. Its core objective is to end the SEC’s practice of ‘regulation through enforcement’ by clearly defining which digital assets are securities and which are commodities. The bill also incorporates consumer protection measures, allocating approximately $150 million for anti-fraud initiatives and imposing resale restrictions on insiders to curb ‘pump-and-dump’ schemes, where asset prices are artificially inflated before being sold off.

Currently, the legislation is stalled in the Senate due to partisan disagreements over ethics provisions. It is expected to be reconsidered when the Senate reconvenes on September 15. Coinbase CEO Brian Armstrong expressed strong support for the bill at the event, noting it would ensure the administration’s progress in this sector endures for decades.

Political Opposition and Conflicts of Interest

The Clarity Act faces significant opposition from some Democratic lawmakers, who voice concerns about potential presidential conflicts of interest. Senator Elizabeth Warren, D-Mass., criticized the bill, highlighting Trump’s substantial earnings from cryptocurrency ventures. She argued the legislation does not adequately protect investors or the financial system.

In June, the President disclosed nearly $1.2 billion in income from his crypto businesses in 2025, including $526 million from World Liberty Financial, a venture he co-founded, and over $600 million from CIC Digital LLC, which sells souvenir ‘meme’ coins. These earnings have prompted criticism, with former Trump White House special counsel Ty Cobb suggesting the President’s involvement in these ventures, coupled with policy creation that benefits himself and his family, raises legal and ethical questions.

Despite political hurdles, the SEC proposed a new Crypto Assets Rule on Tuesday that aims to facilitate capital raising for crypto entrepreneurs in the US. SEC Chairman Paul Atkins affirmed the agency’s support for the Clarity Act, viewing it as a critical step. Similarly, the CFTC is set to hold its first innovation advisory committee meeting on Thursday to discuss its regulatory plans, with Chairman Michael Selig underscoring that clear rules foster confidence, attract investment, and create jobs.