Trump Pushes Crypto Bill to Split SEC/CFTC Oversight
Former President Trump is reportedly pushing for the CLARITY Act, a bill that would establish clear regulatory lanes for crypto by splitting oversight between the SEC and CFTC. The move is seen as critical for providing regulatory certainty for stablecoins and payment rails in the U.S.
The CLARITY Act aims to resolve the long-standing jurisdictional tug-of-war between the SEC and CFTC by creating a clear definition for "digital commodities." This legislation would grant the CFTC exclusive oversight of spot markets for these assets, while preserving the SEC's authority over digital assets that function as securities or investment contracts. This move directly addresses the "regulation by enforcement" approach that characterized former SEC Chair Gary Gensler's tenure, which created significant uncertainty for the industry. Currently, firms face ambiguity as the SEC often classifies most tokens as securities under the Howey Test, while the CFTC has historically viewed assets like Bitcoin and Ether as commodities. For payment infrastructure leaders, the bill's most critical impact is on stablecoins. Regulatory certainty is the primary prerequisite for integrating stablecoins at scale into traditional payment rails for faster, 24/7 cross-border settlement and reduced costs. Major networks like Mastercard and Visa are already building the infrastructure to settle transactions using stablecoins like USDC, treating them as a new rail behind their existing stacks. The lack of a clear federal framework is a key obstacle holding back broader institutional adoption of digital assets. Banks, asset managers, and payment processors require defined rules to manage risk, ensure compliance, and gain confidence before integrating blockchain-based systems more deeply. Legislatively, the CLARITY Act passed the House in mid-2025 with bipartisan support, signaling momentum for establishing a comprehensive U.S. framework for digital assets. The bill now faces a more extensive negotiation process in the Senate, where amendments related to stablecoin yield and the role of banks have been introduced. From a strategic leadership perspective, navigating this evolving landscape requires influencing product roadmaps amid regulatory uncertainty. Senior product leaders must build a vision that anticipates how new rails like stablecoins will integrate with existing infrastructure, like FedNow and RTP, while ensuring fraud prevention and digital identity solutions can adapt to on-chain transactions.
