Crypto Regulation Progresses Through Agency Action Amid CLARITY Act Stalemate

The CLARITY Act, which aimed to provide clearer guidelines for crypto regulation, has stalled in the Senate after a procedural vote. However, regulatory progress continues through agency action.

The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have issued guidance on tokenization, recordkeeping, and trading. The CFTC's September 24 FAQ update clarified how registrants can use tokenized forms of permitted investments and blockchain-based recordkeeping within existing rules.

The SEC has also approved a temporary exemption for certain venues trading tokenized U.S. stocks in permissioned settings. This five-year measure allows limited on-chain trading while the agency considers broader rules.