CLARITY Act Delay May Not Be Catastrophic, Say Experts

With the CLARITY Act's uncertain fate in the Senate, its passage may be delayed until after the recess. This has raised concerns about the impact on the digital asset market, but Brownstone Research suggests that even a delay might not be catastrophic.

The Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Office of the Comptroller of the Currency (OCC), and other agencies have already been working to fill the gap in guidance. In March, they released a joint effort called Token Taxonomy under U.S. federal law, which explicitly classifies 16 major assets, including Bitcoin and Ether, into five categories.

These categories are digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. The SEC has also released statements on tokenized securities and regulatory harmonization, while the CFTC is working to upgrade markets with tokenized collateral for margin and spot crypto contracts on CFTC futures exchanges.

Furthermore, the OCC has granted various crypto companies banking charters and ensured they are treated fairly. The Federal Reserve's payment rails are now accessible to some of these companies, which was unheard of two years ago.

While codifying these rules with a bill like CLARITY would provide permanence, Brownstone Research argues that the industry won't be completely without guidance even if the bill is delayed.