Crypto Stocks: Regulatory Clarity Shifts to Institutional Rulemaking

Following the failure of the CLARITY Act in Congress, Bernstein Research believes this is a buying opportunity for crypto stocks.

The firm thinks that regulatory clarity will shift to institutional rulemaking by the SEC and CFTC, which will accelerate due to lost time during negotiations. Stablecoins remain unaffected as they fall under the GENIUS Act.

Bernstein expects five key rules: token classification and financing exemptions; developer protections for DeFi protocols and self-custodial infrastructure; innovation exemptions and transfer agent rule updates for equity tokenization; faster approval for perpetual futures on real-world assets; and classification corrections for federal sports event contracts.