BSV Wins Big as Regulators Outmaneuver Failing CLARITY Act

The U.S. Senate rejected the CLARITY Act, a bill aimed at establishing a clearer regulatory framework for digital assets, by a vote of 49-50.

Despite its failure, both the SEC and CFTC moved quickly to provide relief for certain digital asset activities, including tokenized stocks, self-custodial wallets, passive software, and public permissionless ledgers.

The SEC announced an innovation exemption allowing certain tokenized stocks to trade on-chain, with requirements that smart contracts used by these venues must be auditable, public, and deployed on a public ledger.

The CFTC issued no-action relief for providers of passive software, including self-custodial crypto wallet software.