Crypto
Trump Says US Has "Taken Over Crypto" Even As CLARITY Act Hits Wall
Trump touts US crypto leadership as lawmakers and regulators continue working through key legislation and market rules.
49m ago 4,280
BLOCKINSIDERLoadingTrump touts US crypto leadership as lawmakers and regulators continue working through key legislation and market rules.
President Donald Trump declared this week that the US has "taken over crypto." He made the claim from the White House on July 6. Trump said Washington no longer fears losing the industry to China.
Yet two of his own administration's signature crypto acts remain incomplete a year after they were promised. New SEC rules are only now taking shape, days after his remarks.
Speaking from the Oval Office, Trump said he became a "big crypto guy" for one reason.
"If we don't have it, China's going to have it," he said.
He added that Beijing is "not even trying that hard" anymore. Trump linked the comments to remarks on artificial intelligence, framing both as fronts in a tech race with China.
Trump's rhetoric is running ahead of his government's output. Two major legislative promises remain stuck in various stages of incompleteness. The SEC only unveiled its next regulatory steps on July 7.
The Digital Asset Market Clarity Act was meant to define federal crypto oversight. It has missed its White House target. The administration wanted a signing ceremony by July 4. Instead, the bill sits at Calendar No. 423 in the Senate.
It still needs a cloture motion, 60 votes, and reconciliation with the Agriculture Committee's version. Three disputes are blocking Democratic support. They involve ethics rules tied to Trump's own crypto income. Law enforcement objections and stablecoin yield disputes remain unresolved, too.
The Senate returns July 13, leaving roughly three weeks before recess. Analysts see this window as the last realistic chance for passage in 2026. Prediction markets that once priced passage above 80% now hover near 48%.
The GENIUS Act fares little better on implementation. It was signed into law in July 2025. Its rulemaking deadline falls on July 18, 2026, just days away.
Six federal agencies, including the OCC, FDIC, and Treasury, must finalize stablecoin issuer rules by then. The Federal Reserve has yet to issue its own proposal. All major comment periods closed by June 9, but no final rules have been published yet.
If regulators miss the deadline, the law will still activate automatically by January 2027 anyway. That would leave issuers in regulatory limbo. Offshore players like Tether face particular uncertainty over compliance status.
Against this backdrop, the SEC announced fresh rulemaking plans on July 7. One proposal considers exemptions and safe harbors for crypto asset sales. It aims to clarify rules while protecting investors.
A second proposal would amend Exchange Act rules for crypto trading. It would cover alternative trading systems and national exchanges. Both proposals target formal notice this month.
Both carry no legal deadline, despite being tagged "economically significant." Neither has been finalized. Exchanges and issuers are still waiting for the clarity promised since 2025.
Trump's warning about China losing patience doesn't match Beijing's actual posture. China formally reaffirmed its crypto ban in February. The directive targeted offshore yuan-pegged stablecoins and asset tokenization specifically.
Eight state regulators, led by the People's Bank of China, issued that notice. Private crypto trading, mining, and holding remain effectively prohibited on the mainland. Beijing continues pushing its own digital yuan instead.
The e-CNY now handles roughly a third of domestic retail transactions. Hong Kong runs a separate, licensed stablecoin regime under its own ordinance. Even that experiment proceeds cautiously, with Beijing keeping tight limits.
There is little sign China is racing to out-legislate the United States on crypto. Beijing isn't sprinting toward dominance; it's reinforcing capital controls instead. The urgency Trump describes doesn't match what Chinese regulators are doing.
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