CLARITY Act Fades from View: Regulatory Agencies Step In
The fate of the CLARITY Act, a bipartisan bill aimed at clarifying regulatory frameworks for cryptocurrencies, remains uncertain. With the August recess looming and a procedural vote scheduled for September 15, industry stakeholders are increasingly pessimistic about its chances.
According to Ian Katz, managing director of Capital Alpha Partners, the likelihood of the CLARITY Act passing has dimmed from 40% to 25%. If it fails to pass, regulatory agencies such as the SEC and CFTC will likely take matters into their own hands, proposing rulemaking that could shape the crypto market's future.
The SEC has already begun moving forward with crypto-related rulemaking, including proposals for streamlining how crypto companies raise capital. Meanwhile, the CFTC is exploring potential rulemaking on issues such as leveraged or margin-based trading and decentralized finance protocols.
However, industry insiders warn that agency rulemaking may not have the same permanence as legislation passed by Congress. 'It's much easier to change a rule than it is to change a law,' said Matthew Bisanz, a financial regulatory partner at Mayer Brown.