Bernstein Warns of Swift Regulatory Action After CLARITY Act Fails
Bernstein analysts expect 'aggressive and swift' rulemaking from US regulatory agencies after the Digital Asset Market Clarity (CLARITY) Act failed to pass a Senate cloture vote on Tuesday.
The CLARITY Act aimed to establish a regulatory framework for digital assets, but its failure has prompted regulatory bodies to publish new regulations instead. Bernstein analysts said these rules will make up for lost time negotiating the CLARITY Act and include token taxonomy for raising capital, developer protection measures concerning decentralized finance, 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 SEC proposed new rules on August 19 that would create a 'clear and fit-for-purpose framework' for certain investment contracts involving crypto assets. These rules offer exemptions allowing the issuance of up to $5 million in tokens during four years and up to $75 million during 12 months, as well as a safe harbor exempting cryptocurrencies from being treated as 'investment contracts.'