Crypto Regulation Prospects Dim as Agencies Chart Their Own Course

The prospects for the CLARITY Act, which aims to provide a clear regulatory framework for the cryptocurrency market, are dwindling. According to Ian Katz, managing director of Capital Alpha Partners, the chances of the bill becoming law this year have decreased from 40% to 25%, and may be trending even lower.

As a result, some agencies are starting to chart their own course for rulemaking. The Securities and Exchange Commission has begun moving forward with crypto rulemaking, while the Commodity Futures Trading Commission has signaled it could pursue its own rules if the CLARITY Act fails to pass.

Meanwhile, the Small Business Administration (SBA) has unveiled new size standards that would result in an additional 114,500 companies qualifying as small businesses. This could increase the number of established borrowers eligible for government-backed loans, making SBA lending programs more appealing to banks and credit unions.