The White House pushed back Thursday against claims that it has refused to nominate Democratic commissioners to key financial regulators, adding another dispute to the debate over U.S. cryptocurrency rules as the Senate prepares to return from recess.
In a letter to Senate leaders, the White House said it had asked Democrats for recommendations for vacant seats at the Securities and Exchange Commission and the Commodity Futures Trading Commission but had “not received names in response,” Yahoo Finance reported, citing the letter.
The exchange comes as lawmakers continue work on the Digital Asset Market Clarity Act, known as the CLARITY Act, which would create a broader federal framework for cryptocurrency markets. The Senate is scheduled to return from recess on July 14, with crypto legislation among the issues drawing attention in Washington.
The nomination dispute centers on the SEC and CFTC, the two agencies that have long shared oversight of digital assets. The SEC has handled many crypto cases through securities law, while the CFTC oversees derivatives markets and has pushed for a larger role in digital commodity oversight.
The Senate Banking Committee advanced the CLARITY Act on May 14 by a 15-9 vote, with all Republicans and two Democrats supporting the measure at the committee stage, Reuters reported. The bill is designed to clarify when digital assets fall under SEC oversight and when they are treated as commodities under the CFTC.
Supporters of the bill say the United States needs a national framework after years of uncertainty over crypto regulation. Treasury Secretary Scott Bessent urged Congress earlier this year to pass the legislation, saying unclear rules had helped push crypto activity to jurisdictions such as Abu Dhabi and Singapore.
Sen. Cynthia Lummis, R-Wyo., has also pressed for passage of the bill. She said this week that Congress was facing what she called its “last chance” to get digital asset legislation on the books before 2030, the Yahoo Finance report said.
CFTC Chair Michael Selig said in a Fox Business interview that regulators may end up writing crypto rules themselves if Congress does not pass the CLARITY Act, The Block reported. Selig said the industry needs a federal standard rather than a patchwork of state rules.
Several policy disputes remain unresolved. One major issue is the Blockchain Regulatory Certainty Act, a provision that would protect certain non-custodial blockchain software developers from being treated as money transmitters merely for publishing code. The Senate Banking Committee’s section-by-section summary says Section 604 would exempt some blockchain developers and providers from money transmission registration requirements while preserving criminal liability for unlawful conduct.
Law enforcement groups have raised concerns about whether those protections weaken anti-money laundering enforcement. The White House met with law enforcement representatives in late June as officials worked through objections to the CLARITY Act’s developer protections, CoinDesk reported.
Another dispute involves stablecoin rewards. The GENIUS Act, signed into law in 2025, created federal rules for payment stablecoins and barred issuers from paying interest or yield to holders, according to a White House economic policy paper. Lawmakers are still debating whether exchanges and other platforms can offer rewards tied to stablecoin holdings.
The stablecoin issue has drawn attention from banks and crypto companies. Banks have warned that reward-bearing stablecoin products could pull deposits away from traditional lenders, while crypto firms argue that rewards offered by platforms are different from issuer-paid interest, Reuters Breakingviews reported.
The CLARITY Act debate is also taking place against a wider geopolitical backdrop. U.S. officials have continued to focus on sanctions enforcement, illicit finance and digital asset use by bad actors, including during conflicts and periods of tension involving Russia, Iran and the Middle East. Those concerns have shaped arguments from lawmakers and enforcement groups seeking tighter controls around crypto activity.
Crypto markets traded higher Thursday, with the overall market value rising about 1% to around $2.2 trillion as Bitcoin and Ether edged up, Yahoo Finance reported. The outlet said the move came as oil prices eased while tensions between the U.S. and Iran continued to affect broader markets.
