Today in crypto, US crypto regulation remained in focus as US President Donald Trump prepares to meet senators to push the CLARITY Act forward, his attorney general nominee faced tough questions over crypto enforcement, while European regulators warned that MiCA’s transition could create new anti-money laundering risks as firms and customers migrate to licensed providers.
Trump to meet with senators over CLARITY Act on Thursday
US President Donald Trump is set to meet with several senators at the White House on Thursday to discuss progress on the crypto market structure bill.
According to Politico, Senator Bernie Moreno said a group of senators will brief the president on the bill and “its path to success.” Senator Cynthia Lummis will also attend, according to a Senate Republican aide.
“We’ll be talking about the entirety of the bill. I mean, obviously the president’s been very engaged in this bill,” said Moreno. “He’s the one who’s really driven the innovation that I think will pay dividends.”
The meeting comes as lawmakers race to pass the crypto market structure bill, known as the CLARITY Act, before the Senate’s August recess. Many lawmakers see it as the last realistic opportunity to pass the legislation before the midterm elections.
“I’m hoping that we can come up with some agreement by the end of this week,” Senator Thom Tillis, who has been helping work through the CLARITY Act’s unresolved provisions, told Politico.
“I think it’s critical if we’re going to try and get this across the floor before August recess.”
US AG nominee faces Senate scrutiny over crypto enforcement and CZ pardon
President Donald Trump’s nominee for US Attorney General, Todd Blanche, faced sharp questioning from Senate Democrats and Republicans over his role in reshaping the Justice Department’s crypto enforcement strategy and the pardon of former Binance CEO Changpeng Zhao.
During a Senate Judiciary Committee confirmation hearing, Senator Dick Durbin accused Blanche of dismantling the Justice Department’s crypto enforcement unit and ending active investigations into the digital asset sector while serving as deputy attorney general. Durbin argued the policy shift benefited Trump’s crypto interests, including World Liberty Financial, and criticized Zhao’s presidential pardon following his 2023 guilty plea over Anti-Money Laundering violations.
Blanche rejected no allegations directly but said he would review the pardon process if confirmed. Republican Senator Thom Tillis also raised concerns about Zhao’s pardon.
Todd Blanche at his confirmation hearing before the Senate Judiciary Committee. Source: Associated Press
Crypto firms face AML risks during post-MiCA migration, says AMLA chair
Mass user migration following the end of the MiCA transitional period could strain compliance at virtual asset service providers (VASPs) in the European Union, according to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA).
“Because we know customers will rush to withdraw, this will put additional pressure on these VASPs,” Szego said during a Wednesday briefing with the European Parliament’s Committee on Economic and Monetary Affairs.
Szego said firms winding down their EU operations could come under pressure as customers rush to withdraw, while licensed crypto companies could face onboarding challenges as they absorb new users. She urged service providers to maintain efficient compliance procedures throughout the transition.
MiCA’s 18-month transitional period ended on July 1, requiring crypto asset service providers (CASPs) to hold a license to continue serving EU customers. The European Securities and Markets Authority said crypto service providers that remain unauthorized by the deadline must take “immediate” steps to wind down their EU activities.
