Crypto Can Thrive Without US Rules, Grayscale Says

Grayscale's Head of Research, Zach Pandl, believes that the crypto industry can continue to advance without the passage of the CLARITY Act. The bill, aimed at setting US rules for digital asset markets, is unlikely to pass this year due to a crowded Senate calendar and election-year politics.

Pandl pointed out that cryptocurrencies have operated for roughly 17 years without comprehensive market structure rules in the US. He expects regulators, particularly the Securities and Exchange Commission (SEC), to fill gaps through rulemaking, especially around tokenized securities.

The SEC has already provided interpretative guidance on the application of Federal securities laws to crypto assets, which Pandl sees as a 'big step forward for the industry'. He also credits the Trump-era policy for aiding the sector by introducing new institutional custody rules and improving access to banking.

However, without clear rules at home, Grayscale warns that a growing share of new investment and developer activity could drift to overseas markets. Pandl framed this as a 'missed opportunity' rather than a crisis for domestic crypto markets.