CLARITY Act's Double-Speed Impact on Crypto Market
The CLARITY Act is expected to have a significant impact on the crypto market when it becomes law. However, its effects will not be immediate for all provisions. Some parts of the bill will take effect by operation of law, while others will wait for rulemakings from two short-staffed agencies.
The ETP grandfather clause and Section 604 shield are examples of provisions that will operate immediately. The former classifies XRP, SOL, and DOGE as non-securities, while the latter provides a shield for non-custodial developers. Federal preemption of conflicting state regimes also takes effect instantly.
However, most provisions in the bill, including self-certification, digital commodity exchange registration, and ancillary-asset disclosure, will wait for rulemakings from the SEC and CFTC. The agencies have a history of missing their own deadlines, which could lead to delays in implementing these provisions.