Cryptocurrency markets rallied on Thursday after U.S. President Donald Trump urged Congress to pass the Clarity Act, a bipartisan bill aimed at establishing clear regulatory rules for digital assets. Bitcoin rose more than 11% in two days, reaching just below $72,000 on Thursday, its highest level since June. The surge followed a White House meeting with crypto industry executives, including leaders from Coinbase, Kraken, Robinhood, Ripple, and Chainlink, where Trump called for legislative action.
Trump’s push for the Clarity Act comes as regulatory agencies accelerate rulemaking. The Office of the Comptroller of the Currency (OCC) announced plans to finalize federal rules for stablecoins by November, with license applications for crypto firms to begin in January. The OCC’s framework stems from the GENIUS Act, passed in July 2025, which established the first federal regulatory structure for stablecoins—digital tokens pegged to the U.S. dollar and backed by high-quality liquid assets.
Crypto-related stocks also surged, with Coinbase Global gaining 5.7%, Strategy rising 5.8%, and Circle up around 6% in premarket trading. Bitcoin mining machine maker Canaan also saw gains. The rally was amplified by a short squeeze, with roughly $2.7 billion in crypto short positions liquidated on Wednesday, according to CoinGlass. Treasury yields pulled back sharply, easing pressure on risk assets and contributing to the broader market movement.
White House and Industry Push for Regulatory Clarity
President Trump’s call for a "fair version of the Clarity Act" reflects ongoing disputes over ethics provisions in the bill. The legislation, scheduled for a Senate vote in September, aims to define whether cryptocurrency qualifies as a security or a commodity, clarifying jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill would also broaden consumer protections and enhance oversight of the industry.
Coinbase CEO Brian Armstrong argued that the Clarity Act would prevent another FTX-style collapse, citing the need for clearer rules to protect ordinary investors. "The current status quo today is that there isn’t much clarity about what the rules are," Armstrong told CBS News. "So we are seeing a lot of ordinary Americans get harmed by using some of these products." The bill includes provisions for law enforcement to address illicit activity and allows for new financial products, such as earning rewards on stablecoin balances.
Trump disclosed over $1.4 billion in earnings from his family’s crypto ventures in 2025, raising concerns among some lawmakers about conflicts of interest. Democrats and some Republicans have resisted the bill without stronger ethics language to prevent government officials from profiting from digital assets. "The concerns around Trump and his family profiting from crypto ventures are therefore important and could complicate the negotiations," said U.S. Tiger Securities analyst Bo Pei.
Regulatory Moves and Market Reactions
The OCC’s accelerated timeline for stablecoin regulation follows the GENIUS Act, which established the first federal framework for stablecoins. Acting Comptroller Jonathan Gould announced plans to finalize rules by November, with crypto license applications to begin in January. TD Cowen analyst Jaret Seiberg described the move as "critical for payment stablecoin issuance" and potentially beneficial for banks.
Bitcoin and Ether also gained, with Bitcoin rising 5.9% and Ether 2.8% in afternoon trading. The Clarity Act’s potential passage has been cited as a key driver of market optimism, though some analysts warn that regulatory uncertainty remains without legislative action. SEC Chair Paul Atkins and CFTC Chair Mike Selig attended the White House meeting, signaling coordination between regulators and industry leaders.
The Clarity Act’s path forward remains uncertain due to disputes over ethics provisions. While Trump and industry executives advocate for its passage, lawmakers continue to debate the scope of regulatory oversight and conflict-of-interest rules. The bill’s potential enactment can shape the future of the U.S. crypto market, influencing innovation, consumer protection, and the country’s global competitiveness.