SEC Chair Paul Atkins Urges US to Lead AI and Crypto With CLARITY Act as Trump Presses the Senate

Recent public statements from Atkins, Trump, and Senator Bill Hagerty have highlighted the CLARITY Act as a key step toward strengthening U.S. leadership in cryptocurrency, artificial intelligence (AI), and financial innovation while providing long-awaited regulatory certainty for the digital asset industry. 

SEC Chair Paul Atkins Says CLARITY Act Is Critical for Innovation

Speaking about the future of digital finance, SEC Chair Paul Atkins emphasized that the United States should aim to lead global innovation by adopting clear digital asset regulations.

SEC Chair Paul Atkins called on the U.S. to lead global AI, crypto, and financial innovation by passing the CLARITY Act. Source: @Crypto_TownHall via X

The proposed legislation is designed to establish a comprehensive regulatory framework for digital assets by clearly defining the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Supporters argue that the bill would reduce legal uncertainty for crypto businesses while creating a more predictable environment for tokenized assets and on-chain financial markets.

Since becoming SEC Chair in April 2025, Atkins has also promoted initiatives such as Project Crypto, which seeks to introduce interim regulatory guidance and develop a clearer taxonomy for digital tokens while Congress considers permanent legislation. His approach marks a notable shift from an enforcement-focused regulatory strategy toward one centered on formal rulemaking and market clarity.

Trump Calls on Senate to Advance the CLARITY Act

President Donald Trump also renewed his support for the legislation in a Truth Social post shared by the White House Rapid Response account.

In the message, Trump urged the Senate to approve the CLARITY Act, describing it as an important measure for maintaining America’s technological leadership. He also dedicated the call to the late Senator Lindsey Graham.

The official White House Rapid Response account shared President Trump’s Truth Social post urging the Senate to pass the Digital Asset Market CLARITY Act. Source: @RapidResponse47 via X

Trump argued that the legislation would help prevent rival nations, including China, from gaining an advantage in emerging technologies such as cryptocurrency and artificial intelligence.

His comments come as policymakers increasingly frame digital asset regulation as part of a broader strategy to strengthen U.S. competitiveness in financial technology and AI.

The CLARITY Act has already passed the House of Representatives and advanced through the Senate Banking Committee with bipartisan backing, moving it closer to consideration by the full Senate.

Atkins Highlights Blockchain Transparency While Acknowledging Privacy Challenges

In separate remarks, Atkins discussed one of blockchain technology’s defining characteristics—its transparent and publicly verifiable ledger.

He said public blockchains provide “superior transparency” because every transfer of value is permanently recorded on an inspectable ledger.

SEC Chair Paul Atkins said public blockchains are more transparent than any legacy financial system ever built. Source: @Kalshibacktest via X

At the same time, Atkins noted that transparency creates important policy considerations. He said regulators and industry participants must balance public visibility with privacy protections, national security interests, and market efficiency.

He also pointed to potential challenges, including front-running risks and the possibility that excessive transparency could discourage certain market-making activities.

The comments, highlighted by crypto-focused account Kalshi Backtest, reflect the SEC’s evolving approach toward blockchain technology under the current leadership.

Senator Bill Hagerty Says Regulatory Clarity Will Strengthen US Crypto Markets

Senator Bill Hagerty has likewise encouraged lawmakers to approve the CLARITY Act, arguing that it would build on the regulatory foundation established by the GENIUS Act, which created a federal framework for stablecoins.

Senator Bill Hagerty urged Congress to pass the CLARITY Act, saying it would build on the GENIUS Act’s success in fostering stablecoin innovation and strengthening U.S. dollar leadership. Source: Senator Bill Hagerty via X

According to Hagerty, clear market structure rules could encourage additional investment, support innovation, and reinforce the global role of the U.S. dollar in digital finance.

The CLARITY Act proposes dividing regulatory oversight between the CFTC and the SEC by classifying qualifying digital assets as either commodities or securities. It would also establish clearer operating rules for digital asset markets, including provisions affecting token issuers, exchanges, brokers, and certain stablecoin activities.

Supporters say these measures would reduce regulatory uncertainty that has long affected the U.S. crypto industry and provide businesses with clearer compliance expectations while encouraging responsible innovation.