Weekly Crypto Regulation Roundup: Trump Taps Fed Pick and SEC Issues Tokenization Warning

Washington’s crypto policy machine is shifting gears again.

This week’s regulatory headlines show a familiar tension: lawmakers and agencies are inching toward clearer rules, but the path remains messy, politicized, and deeply intertwined with broader financial power struggles.

From a surprise Federal Reserve nomination to fresh Securities and Exchange Commission (SEC) warnings on tokenization, the week offered a snapshot of where U.S. crypto regulation is heading in 2026—and what still stands in the way.

Trump’s Fed Pick Indicates a Bitcoin-Friendly Tilt

President Donald Trump confirmed on Friday that he intends to nominate Kevin Warsh as the next chair of the Federal Reserve, replacing Jerome Powell when his term ends in May.

Warsh, a former Fed governor and G20 representative, is widely viewed as more open to nontraditional monetary frameworks, a factor that has drawn attention from Bitcoin advocates who see the asset as a hedge against long-term currency debasement.

While the Fed chair does not regulate crypto directly, the appointment could shape macro conditions, market psychology, and the political tone around financial innovation.

CLARITY Act Moves Forward—Barely

The long-awaited CLARITY Act took a step closer to reality after the Senate Agriculture Committee advanced its version of the crypto market structure bill in a narrow 12–11 vote.

The legislation seeks to shift U.S. oversight away from enforcement-driven ambiguity toward clearer statutory jurisdiction, granting the CFTC primary authority over digital commodity spot markets while leaving the SEC to regulate investment-contract sales.

But the bill remains fragile. Senator Roger Marshall agreed to shelve a controversial swipe-fee amendment that risked collapsing the markup process entirely, showing how unrelated financial lobbying battles can still derail crypto legislation at the last moment.

Ripple Finds an Unlikely Ally at the SEC

One of the more major developments came from Teresa Goody Guillén, a former SEC lawyer, who submitted public comments backing Ripple’s argument that speculation alone should not automatically trigger securities regulation.

Her position reinforces a growing policy push to separate the underlying asset from the investment contract—a distinction that could reshape how tokens are classified in future frameworks.

SEC Draws a Line on Tokenized Securities

The SEC issued one of its clearest statements yet on tokenization this week: wrapping a stock or bond in blockchain infrastructure does not change its legal identity.

Tokenized securities, regulators stressed, remain securities under federal law regardless of format. As tokenization moves from pilot projects into real financial products, the agency is saying that “on-chain” does not mean “outside the rules.”

White House Steps In as Stablecoin Debate Stalls

With negotiations dragging on, the White House is convening crypto executives, banking leaders, and lobbying groups on February 2 to resolve disputes over the CLARITY Act, particularly around how stablecoin interest and rewards should be treated.

A compromise on the proposal has still not been reached, despite nearly two weeks of negotiations, insiders noted. If no agreement is reached by Monday, the meeting is likely to be delayed, they added. The meeting reflects how central stablecoins have become to the regulatory endgame.

Enforcement Questions After DOJ Unit Shutdown

Six U.S. senators, including Elizabeth Warren and Richard Durbin, criticized Deputy Attorney General Todd Blanche over his decision to shut down the DOJ’s crypto crime unit while reportedly holding personal crypto assets.

The episode raises uncomfortable questions about enforcement priorities, conflicts of interest, and the federal government’s commitment to policing illicit finance in digital markets.

Prediction Markets Enter the Spotlight

Finally, the CFTC shows that platforms like Polymarket and Kalshi may soon face a clearer rulebook. Chairman Mike Selig said the agency supports lawful innovation, but wants more defined standards for event contracts as prediction markets explode in volume.

The Bigger Picture

Taken together, this week’s developments suggest the U.S. is moving closer to a post-enforcement regulatory era, but only through political compromise, institutional power struggles, and increasing pressure from both Wall Street and crypto-native firms.

Clarity is coming. But it won’t arrive cleanly.