Trump hosts crypto executives as the SEC proposes its friendliest rules yet
Regulation Crypto Assets would exempt token sales up to $75m and lift some assets out of securities law altogether.
By Ana-Maria Stanciuc, The Next Web
The Securities and Exchange Commission spent Tuesday proposing the friendliest set of crypto rules an American regulator has ever put on paper. On Wednesday, the industry that would benefit from them was at the White House, having lunch with the president.
Donald Trump hosted crypto executives and trade body officials in Washington alongside Paul Atkins, who chairs the SEC, Mike Selig of the Commodity Futures Trading Commission, and Patrick Witt, the administration’s crypto adviser.
It is a guest list that would raise eyebrows in a normal week, and this was not one, given that Trump has reported roughly $1.4bn in crypto income from his family’s ventures.
Summary
The SEC has proposed its most crypto-friendly rules yet, creating a much easier path for crypto companies to raise money through token sales. One exemption would permit a one-time offering of up to $5 million, while another would allow issuers to raise as much as $75 million in a 12-month period without completing the SEC’s full securities-registration process. The larger offerings would still require financial statements, continuing reports and other disclosures, so this would not eliminate regulation. It would, however, provide a considerably lighter and less expensive alternative. The SEC’s proposal is summarized here.
The proposal’s most consequential provision could allow a token to leave securities regulation altogether once its developers have completed—or permanently abandoned—the essential work they promised investors. The SEC’s reasoning is that investors are no longer depending on the founders’ future work to generate profits, so the token is no longer tied to an “investment contract.” Supporters see this as long-overdue clarity after years in which crypto policy was largely established through enforcement cases and litigation. Critics worry that projects could raise large amounts from the public under reduced requirements and then find an overly easy route out of federal securities oversight.
The policy arrives with an unusually serious conflict-of-interest problem. President Trump hosted leading crypto executives at the White House one day after the SEC announced the proposal, with the chairs of both the SEC and CFTC in attendance. At the same time, Trump and his family have extensive financial interests in the industry that stands to benefit. Trump’s 2025 financial disclosure reported more than $1.4 billion in crypto-related income, including approximately $520 million from World Liberty Financial token sales and roughly $635 million from the Trump memecoin. A broader Reuters investigation estimated that the Trump family has made approximately $2.3 billion from crypto since Trump returned to office. Reuters reports the financial-disclosure figures here and provides its broader analysis of the family’s crypto earnings here.
Trump says he has no day-to-day role in the family businesses and that his investments are independently managed. But independent management does not eliminate the financial conflict: regulatory decisions that increase the legitimacy, usefulness or value of crypto assets can still benefit businesses from which Trump and his family receive income. The proposal must still pass through public comments, a final commission vote and likely litigation.
Ultimately, a favorable crypto policy is being developed under a president with an extraordinary personal financial stake in its consequences. A recent Reuters/Ipsos poll found that 63% of Americans considered the family’s crypto profits inappropriate and 69% believed Trump’s business interests influenced his presidential decisions. The poll and methodology are discussed here.
