CLARITY Act Failure Gives SEC Free Rein to Fast-Track Crypto

Nate Geraci, president of ETF Store, sees irony in the CLARITY Act's failure to pass. He believes it will give President Trump's SEC free rein to fast-track crypto through existing laws with no congressional guardrails.

The bill needed 60 votes to advance, but Republicans would have required at least seven non-Republican senators. However, Senator Elizabeth Warren has expressed opposition to the bill.

The SEC is expected to release its innovation exemption for trading tokenized versions of stocks as soon as Friday. This move could open the door to 24/7 stock token trading on blockchains.

Jeffries analysts argue that regulatory agency guidance is not a substitute for legislation, as it can be rolled back without a congressional vote. A future administration could reverse some of the work done by the SEC.