Crypto Industry Stuck in Regulatory Limbo as US Legislation Stalls

The crypto industry is facing regulatory limbo as sweeping U.S. legislation stalls in Congress. Despite hundreds of millions spent campaigning for legislation, deep-pocketed crypto companies are now left waiting for clarity from President Donald Trump's regulators.

The Securities and Exchange Commission (SEC) has been working on a rule to exempt certain token offerings from securities rules, with a proposal expected to advance in the coming weeks. Meanwhile, the Commodity Futures Trading Commission (CFTC) has signaled it will discuss crypto regulation at an industry gathering this week.

Crypto executives are warning that only Congress can create a lasting framework for the industry. The Clarity Act aims to define which tokens qualify as securities versus commodities and which agencies have oversight of the sector.