Agencies Step In As Crypto Regulation Stalls in US Congress

US cryptocurrency regulation is shifting towards federal agencies as Congress stalls on passing the industry-backed Clarity Act. The bill, which aims to define whether crypto tokens should be regulated as securities or commodities, has slowed in the Senate.

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are taking the lead in shaping regulatory reforms, which could face challenges from future administrations. The SEC is working on a proposal to exempt certain token offerings from securities requirements, while the CFTC will discuss additional cryptocurrency regulations at an industry event.

Industry executives and analysts worry that agency-led reforms may not provide long-term certainty for the sector. Without legislation passed by Congress, regulations introduced by federal agencies could face court challenges or be reversed by future administrations.