Trump to host crypto executives as SEC considers regulations

White House Meeting and SEC Proposal

President Donald Trump hosted cryptocurrency executives at the White House this week, a gathering that coincided with the Securities and Exchange Commission's (SEC) proposal of new regulations for digital assets. The meeting, held on Wednesday, brought together industry leaders and regulators, including SEC Chair Paul Atkins, Commodity Futures Trading Commission (CFTC) Chair Michael Selig, and the administration's crypto advisor, Patrick Witt, as reported by The Next Web.

The SEC's proposal, called Regulation Crypto Assets, was introduced on Tuesday. It creates two registration exemptions for token offerings: one covering up to $5 million over four years, and another allowing up to $75 million in any 12-month period. The more significant element is a conditional safe harbor, under which a token could fall outside the definition of an investment contract once its issuer has completed or permanently abandoned the managerial efforts promised to investors.

"This proposal would allow for a safe harbor once an issuer has completed or permanently ceased all essential managerial efforts that it represented or promised it would take under an investment contract," Atkins said in the commission's announcement, as quoted by The Next Web. The rules would also pre-empt state registration requirements for qualifying offerings and certain secondary trades.

The proposal is subject to a 60-day public comment period following publication in the Federal Register, which could push a final rule into next year, according to The Next Web. The outlet noted that the proposal must still survive the comment period, a commission vote, and likely legal challenge.

Bitcoin Purchase Discussion

During a White House gathering on Aug. 19, Trump said his administration had discussed accumulating more Bitcoin or other cryptocurrencies but had not reached a decision, as reported by Crypto News. Responding to a question, Trump said he would likely rely on Paul Atkins and the broader policy team for recommendations.

"Well, it's been talked about," Trump said. "I think I'd probably rely on Paul and the whole group for that."

Trump did not announce purchases, name a funding mechanism, or provide a timetable for expanding federal cryptocurrency holdings, according to Crypto News. The president also claimed that cryptocurrency had "taken a lot of pressure off the dollar" and had been "very, very good" for it, without providing data to support the assertion.

Crypto News noted that no new executive order, Treasury acquisition notice, or congressional authorization accompanied Trump's remarks. The administration's existing authority stems from a March 6, 2025 executive order that established the Strategic Bitcoin Reserve, initially holding forfeited Bitcoin. That order authorized the Treasury and Commerce secretaries to develop budget-neutral strategies for acquiring additional Bitcoin, with potential approaches including converting other federal assets or using revenue from government holdings.

The March order also created a separate U.S. Digital Asset Stockpile for non-Bitcoin assets, which agencies cannot purchase without further action. Treasury Secretary Scott Bessent previously told Congress that the government would retain seized Bitcoin while considering budget-neutral options, Crypto News reported.

Legislative Push and Context

The White House events occurred against a backdrop of stalled comprehensive crypto legislation in Congress. Trump urged lawmakers to pass the CLARITY Act, which he described as "very, very structured legislation, which will keep us ahead of China," according to Atlanta Black Star. The House passed the CLARITY Act last year, but it faces trouble in the Senate, where Democrats want rules against public officials selling crypto, the outlet reported.

The Atlanta Black Star also reported on Trump's remarks about the Genius Act, a stablecoin bill he signed into law in 2025. "One year ago, this summer I signed landmark legislation known as the Genius Act," Trump said. "I named it after myself." The Genius Act establishes regulatory guidelines for U.S. dollar-backed stablecoins, setting rules for reserve backing, transparency, and consumer protection, though Atlanta Black Star noted it excludes federal deposit insurance, bans yield payments, and leaves possible gaps in tracking money laundering.

The CFTC was scheduled to discuss crypto regulation at an industry gathering on Thursday, according to The Hindu and The Next Web.

Industry Optimism and Conflict-of-Interest Concerns

Ripple CEO Brad Garlinghouse expressed optimism about regulatory progress following the inaugural meeting of the CFTC's Innovation Advisory Committee in Washington on Aug. 20, as reported by u.today. The committee, chaired by Michael Selig, brought together executives from crypto and traditional finance.

"Everyone was in agreement. Rules written for a different era aren't good enough. Not for consumers. Not for business. Not for innovation," Garlinghouse said in a post on X, as quoted by u.today.

Garlinghouse, who sits on the committee alongside executives from Coinbase, Uniswap Labs, BitGo, Nasdaq, CME Group, and Cboe, recalled Ripple's 2019 open letter to Congress and its four-year legal battle with the SEC, noting that a federal judge ruled XRP itself is not a security. At the SALT Wyoming event, he said the industry had sought out regulation, stating, "It's not the Wild West. In fact, we have sought out regulation. Ripple has 75 licenses around the world."

The regulatory push comes amid public concern about potential conflicts of interest. Reuters/Ipsos polling found that a majority of Americans believe Trump and his family have inappropriately profited from crypto, according to The Next Web and The Hindu. Trump has reported roughly $1.4 billion in crypto income from his family's ventures, which include World Liberty Financial and the $TRUMP memecoin, as reported by multiple outlets.

Trump says he has no day-to-day role in his family's business and that his investments are independently managed, while the White House dismisses allegations of impropriety, The Hindu reported. The Atlanta Black Star listed other merchandising ventures, including watches, bibles, gold sneakers, commemorative coins, digital trading cards, fragrances, guitars, and a mobile phone service.

Perspectives

• The White House / Trump administration: The administration has pursued crypto-friendly policies since Trump returned to office in January 2025, with Trump stating he has no day-to-day role in his family's business and that investments are independently managed. The White House dismisses allegations of impropriety.
• Crypto industry executives: Industry leaders like Ripple CEO Brad Garlinghouse express optimism about regulatory clarity, arguing the industry has sought regulation and that rules written for a different era are insufficient. They support the SEC's new proposal and the CLARITY Act.
• Congressional Democrats: Some Senate Democrats want the CLARITY Act to include rules against public officials selling cryptocurrencies, a condition that could affect the bill's passage.
• Public opinion: Reuters/Ipsos polling indicates a majority of Americans believe Trump and his family have inappropriately profited from crypto, suggesting public concern about potential conflicts of interest.