Trump vows a future-proof crypto law that 'cannot be undone.' The CLARITY Act advanced 15-9 in Senate committee. SEC nears tokenized securities exemption. Next catalyst: Senate floor vote.
Alpha Score of 27 reflects poor overall profile with poor momentum, poor value, weak quality, strong sentiment.
President Donald Trump escalated his administration’s push for a permanent U.S. crypto framework on May 27, vowing to codify a digital asset market structure that “cannot be undone” by future political shifts. In a Truth Social post, Trump accused former SEC Chair Gary Gensler of driving bitcoin, crypto perpetuals, and innovation offshore. He claimed his own policies reversed that exodus. The message tied exchanges, builders, and token issuers directly to America’s financial future.
SEC Chair Paul Atkins reinforced the direction in a post on X, saying the agency has abandoned its prior enforcement-first stance and is working with Congress to deliver “much needed clarity.” The combined executive and legislative push creates a risk event for anyone holding BTC, exchange tokens, or prediction market exposure. The outcome is binary between a durable legal framework and continued regulatory fragmentation.
The simple read is that a friendly White House guarantees crypto’s long-term safety. The better market read is that legislative execution, not executive intent, determines durability. Trump wrote that his administration will “codify a FUTURE-PROOF Digital Asset Market Structure that cannot be undone by the Crypto Haters.” That language signals an attempt to lock in rules through statute rather than executive order. A successor could reverse an executive order with a pen stroke. A statute requires a full legislative repeal.
Congress remains the critical bottleneck. The Digital Asset Market CLARITY Act would establish a federal framework for digital asset oversight, define SEC versus CFTC responsibilities, and set rules for token classification, exchanges, and crypto perpetuals. The Senate Banking Committee advanced the bill to the full Senate in a bipartisan 15-9 vote on May 14. Lawmakers still must reconcile Senate proposals, resolve outstanding market-structure issues, and secure enough support for final passage.
Key insight: The 15-9 vote shows bipartisan momentum. The margin is narrow enough that a single policy dispute – such as prediction market jurisdiction or stablecoin oversight – could stall the bill. Trump’s post also defended CFTC authority over prediction markets, tying derivatives oversight to his wider agenda. That creates a potential friction point with lawmakers who want the SEC to retain more control.
While Congress debates, regulators are moving on a parallel track. Atkins has promoted an “ACT” strategy focused on advancing, clarifying, and transforming SEC regulation. The plan would shift crypto oversight away from enforcement-first actions and toward formal rules, updated disclosure standards, and closer coordination with the CFTC.
Recent SEC initiatives point to a broader rulemaking push. Atkins has said the agency is nearing an innovation exemption for compliant on-chain trading of tokenized securities. SEC officials have also discussed custody, cybersecurity, staff guidance, bitcoin exposure, disclosure modernization, and crypto-linked public companies. Each of these rulemakings could reduce execution risk for institutional participants. They also create regulatory uncertainty until finalised.
The quote underscores the administration’s narrative. The practical question is whether the SEC can deliver rule changes before the next political cycle. Rulemaking takes months. Any delay could leave the framework incomplete.
The assets most directly affected by this risk event are bitcoin, exchange tokens, and crypto perpetuals. A durable legal framework would reduce regulatory tail risk for Coinbase, Binance, and other major exchanges, potentially compressing their cost of compliance and unlocking institutional flows. Builders of tokenized securities and DeFi protocols would gain clearer legal footing, reducing the risk of enforcement actions.
A durable framework would also affect prediction markets like Kalshi and Polymarket, which have faced regulatory uncertainty. Trump’s defense of CFTC authority over prediction markets suggests these platforms could operate under a clearer regime. Any legislative compromise that splits jurisdiction between the SEC and CFTC could create new compliance burdens.
The risk event has two clear paths. The first reduces risk: the CLARITY Act passes, the SEC finalises its innovation exemption, and the CFTC solidifies its role. In that scenario, BTC and exchange tokens could see a structural rerating as institutional capital flows into a regulated market.
The second path amplifies risk: the bill stalls in Congress, the SEC’s rulemaking drags into 2026, or a future administration reverses the framework. In that scenario, the current regulatory clarity is temporary. The offshore shift Trump claims to have reversed could resume.
The next concrete catalyst is the Senate floor vote on the CLARITY Act, which could come as early as June. A successful vote would send the bill to the House, where the timeline is less certain. Traders should watch for committee markups, amendments, and public statements from key lawmakers like Senator Cynthia Lummis and Senator Sherrod Brown.
For now, the risk event is binary: either the U.S. locks in a durable crypto framework, or the window of regulatory clarity closes. The market is pricing in some probability of success. The margin for error is thin. Anyone holding BTC, exchange tokens, or crypto perpetuals should have a clear view on which path they are betting on.
For broader context on digital asset regulation, see our crypto market analysis and the Bitcoin (BTC) profile. The CFTC’s role in prediction markets is also relevant to the CFTC Seeks to Nullify Gemini Settlement After Policy Reversal piece.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.