Crypto Dealmaking to Continue Despite Clarity Act Setback

The Clarity Act, a bill aimed at providing a lasting U.S. rulebook for digital assets, suffered a setback when it failed a procedural vote in the Senate on September 15. The bill's failure has raised questions about the impact on crypto dealmaking, with some expecting a decrease in deals due to regulatory uncertainty.

However, bankers and investors spoken to by CoinDesk do not expect the Clarity Act's setback to significantly impact crypto mergers and acquisitions. They argue that regulators have already provided clearer rules in certain areas, which is unlocking a wave of M&A across digital assets, traditional financial services, and fintech alike.

Paul McCaffery, head of digital assets at investment bank KBW, stated, 'The Clarity Act's setback doesn't change the trajectory.' He noted that the SEC and CFTC are already moving proactively to provide regulatory certainty, which is driving M&A activity.

The SEC has recently approved a temporary 'Innovation Exemption' allowing limited trading of tokenized U.S. stocks on certain onchain venues, and proposed a new rule to clarify how investment firms can handle and keep customer crypto assets. The CFTC has also been removing regulatory barriers, including providing relief to certain software providers.