US President ‘s push for Congress to pass the Clarity Act has injected fresh optimism into the cryptocurrency market, with climbing above $70,000 while others coins also witnessing a surge, Reuters reported.
Trump urged lawmakers to pass a “fair version” of the legislation during a White House meeting with senior cryptocurrency executives on Wednesday, calling it “very, very powerful structured legislation” that would help the US stay ahead of China.
The , an industry-backed bill that has passed the House of Representatives but remains stalled in the Senate, seeks to establish a broad regulatory framework for digital assets. The legislation aims to clarify which cryptocurrencies should be treated as securities and which should be classified as digital commodities.
What is the Clarity Act?
The proposed legislation would provide clearer rules for the cryptocurrency industry and determine which federal regulator has jurisdiction over different types of digital assets.
Under the proposed framework, the Securities and Exchange Commission (SEC) would retain authority over cryptocurrencies classified as securities, while the Commodity Futures Trading Commission (CFTC) would oversee digital commodities.
The bill would also establish rules for cryptocurrency trading platforms, including anti-money-laundering requirements.
The crypto industry has backed the legislation, arguing that regulatory uncertainty has made it difficult for companies to plan investments and operate in the US. Supporters also say clearer rules could encourage investment and help integrate digital assets more deeply into the US financial system.
The New York Times reported that the legislation would shift some power away from the SEC, which played a central role in the Biden administration’s enforcement actions against cryptocurrency companies, and give greater oversight to the CFTC, which is seen as more favourable towards the sector.
Why is the bill stalled?
Although a version of the Clarity Act passed the House last year with support from Democrats and Republicans, the legislation has yet to clear the Senate.
The main dispute is over ethics provisions. Democrats and some Republicans want stronger safeguards preventing public officials, including Trump, from profiting from their own cryptocurrency ventures.
Trump’s family has substantial interests in the crypto sector. Reuters reported that Trump disclosed more than $1.4 billion in earnings from his family’s crypto ventures in 2025.
The New York Times also reported that Democrats have raised concerns over the Trump family’s business interests in cryptocurrency and a preliminary approval granted by a Treasury Department office to an affiliate of World Liberty, a crypto venture in which Trump and his sons have a significant stake.
Against this backdrop, Democrats have pushed for provisions that would prevent government officials from using public office to benefit their digital-asset businesses.
Why does the Clarity Act matter to crypto?
The legislation could provide the regulatory certainty that cryptocurrency companies have sought for years.
Industry executives and analysts have argued that without legislation, crypto regulations remain vulnerable to changes in administrations, shifting political priorities and court challenges.
The bill is also seen as potentially cementing the Trump administration’s broader pro-crypto policy shift, making it harder for a future administration to reverse those changes.
The legislation follows the GENIUS Act, signed into law by Trump in July 2025, which established a regulatory framework for stablecoins, cryptocurrencies typically tied to the US dollar.
How did Trump’s comments affect crypto prices?
Trump’s renewed support for the Clarity Act coincided with a sharp rise in cryptocurrency prices and crypto-linked stocks.
Bitcoin rose as much as 4.1% to around $71,900, according to the Wall Street Journal, crossing the $70,000 mark and reaching its highest level since early June.
Ether also gained more than 3%, reaching its highest level in more than three months, according to Reuters.
Crypto-linked equities also rallied. Coinbase Global gained 8.4%, while Strategy rose 10%. Bitcoin miners including Riot Platforms, MARA Holdings, Hut 8 and Bit Digital also gained.
The Wall Street Journal reported that Coinbase shares jumped close to 8% in premarket trading, while Strategy gained 9.4% after rising 13% in the previous session.
What else is supporting the crypto rally?
Trump’s comments were not the only factor behind the cryptocurrency rally. The US Treasury’s move to increase buybacks of longer-dated bonds pushed Treasury yields lower, which helped boost riskier assets such as cryptocurrencies.
The Wall Street Journal reported that the Treasury’s surprise move lowered borrowing costs and contributed to renewed crypto optimism.
Bitcoin had already risen sharply on Wednesday before Trump’s comments, and the renewed political support for crypto-friendly legislation added to the positive sentiment.
The latest gains, however, come against a weaker backdrop for Bitcoin. According to Reuters, Bitcoin was still down about 18% in 2026 despite the latest rally.
