Bernstein Sees Aggressive Rulemaking as SEC, CFTC Fill Regulatory Vacuum

Bernstein analysts predict 'aggressive and swift' rulemaking from the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) following the failure of the Digital Asset Market Clarity (CLARITY) Act in the Senate.

The CLARITY Act, which aimed to establish a regulatory framework for digital assets, did not pass a cloture vote on Tuesday. Bernstein's analysts expect the SEC and CFTC to make up for lost time by publishing new regulations, including token taxonomy for raising capital, developer protection measures concerning decentralized finance and self-custodial protocols.

They also anticipate innovation exemptions for equity tokenization, faster approval times for real-world asset perpetual futures, and amendments to rules around federal sports event contracts and their classification as swaps.

The analysts believe that these new regulations will bring more clarity to the industry, compensating for the failure of the CLARITY Act. They also cited a statement from SEC Chair Paul Atkins, who said the agency was 'ready, willing, and able to come out with rules' on digital assets if the Senate failed to pass the act.