President Donald Trump urged Congress on August 19 to pass a fair version of the CLARITY Act during a White House event attended by executives from Coinbase, Gemini, Ripple, and Chainlink Labs. Trump stated that the legislation would help the United States maintain its lead over China in cryptocurrency innovation and described the measure as bipartisan.
Coinbase CEO Brian Armstrong told attendees that passing the law would safeguard current crypto policies from future reversals, calling the bill a genuine compromise between political parties. The proposed CLARITY Act aims to divide the oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while also establishing regulations for exchanges, brokers, and custodians.
The House previously passed its version of the bill in July 2025 with a 294 to 134 vote, and the Senate Banking Committee subsequently approved it. However, a full Senate floor vote has not yet taken place.
Senate Divisions and Market Outlook
Lawmakers remain divided over several key issues, including ethics rules, decentralized finance (DeFi) treatment, and stablecoin rewards. Democratic lawmakers are pushing for restrictions on crypto holdings for senior officials across all three branches of government, which could impact Trump's digital asset ventures. Additionally, negotiators disagree on the regulatory approach for DeFi protocols and rules governing stablecoin rewards, a significant revenue source for Coinbase through USDC trading activity.
With Republicans holding 53 seats in the Senate, the bill requires Democratic support to reach the 60-vote threshold needed for passage before the November elections. Prediction markets and industry analyses reflect declining expectations for the bill's passage, with Polymarket odds dropping from 82 percent in February to under 20 percent by mid-August, and Galaxy Digital lowering its estimate to 10 percent on August 14.
Regulatory Actions and Advisory Meetings
Meanwhile, SEC Chairman Paul Atkins connected a new SEC crypto proposal to the necessity of congressional action, noting the plan provides entrepreneurs with greater certainty for raising funds via digital assets. The SEC proposal introduces two funding pathways for crypto offerings: up to $5 million raised over four years, or up to $75 million over 12 months. Atkins emphasized that the SEC cannot independently redefine the legal boundary between securities and commodities, and that only Congress can provide the CFTC with full authority over spot digital commodity markets.
In addition, the Treasury Department is working on implementing the GENIUS Act, which Trump signed in July 2025, to enforce stablecoin rules regarding issuer authorization, reserves, and disclosures. The CFTC also held its first Innovation Advisory Committee meeting on August 20, featuring executives from Coinbase, Ripple, Kraken, Anchorage Digital, and Grayscale. The three-hour session addressed digital assets, artificial intelligence, and prediction markets, though the advisory committee lacks the authority to write rules or initiate enforcement actions.
