Bernstein Sees Aggressive Rulemaking After CLARITY Act Failure
The US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act on Tuesday, dealing a setback to efforts to establish a comprehensive federal regulatory framework for digital assets.
The cloture motion fell short of the 60 votes needed to move the legislation toward debate on the Senate floor. With limited legislative time remaining before a new Congress is sworn in, the failed vote puts the bill's prospects for this year in doubt.
Bernstein analysts expect 'aggressive and swift' rulemaking from the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), following the failure of the CLARITY Act. The regulatory agencies will publish new regulations to 'make up for the time lost negotiating the CLARITY Act,' in an effort to bring more regulatory clarity to the industry.
The proposed rules from the SEC and CFTC would include token taxonomy for raising capital, developer protection measures concerning decentralized finance and self-custodial protocols, innovation exemptions for equity tokenization, faster approval times for real-world asset perpetual futures, and amendments to rules around federal sports even contracts and their classification as swaps.