CLARITY Act failure shifts crypto rulemaking to SEC and CFTC
After the Digital Asset Market CLARITY Act stalled in the Senate, US agencies are pushing tokenised trading and custody rules, though lawyers warn spot-market oversight remains unresolved.
Why it matters: The CLARITY Act's collapse hands crypto rulemaking to the SEC and CFTC, shaping which venues, tokens and deals can move forward in the US.
Key points
- The SEC's five-year Innovation Exemption, introduced 17 September, lets qualifying venues trade tokenised US stocks through blockchain liquidity pools.
- The CFTC sought feedback on 5 October on leveraged retail crypto trading rules and a new registration category for crypto markets.
The failure of the Digital Asset Market CLARITY Act to advance in the Senate has moved the next phase of US crypto regulation to the SEC and CFTC, CoinDesk reports. That shift could push more trading and investment onchain, but leaves open how much certainty regulators can deliver without Congress.
Agencies are acting quickly. The SEC's five-year Innovation Exemption, introduced on 17 September, lets qualifying venues trade tokenised US stocks through blockchain liquidity pools while permanent rules are drafted.
Executives see commercial openings. Paul McCaffery of KBW said the agencies are unlocking a wave of M&A across digital assets, traditional finance and fintech. Bitwise's Matt Hougan expects more token buybacks, especially buy-and-burn models, and argued the bill's failure preserves a regulatory moat for Coinbase and Kraken.
William & Mary's Lev Breydo said only Congress can deliver a framework with statutory durability, while D3's Kevin Kreuser said agency action lacks the same long-term certainty.
What to watch: The CFTC's 5 October request opens a lengthy public comment and rulemaking process, while the SEC continues work on permanent tokenised-stock and custody rules.
Live updates on NewsFeeds:RegulationDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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