Grayscale: No CLARITY Act? We've Got a Plan B
Grayscale, a leading cryptocurrency investment firm, believes that even if the CLARITY Act stalls in Congress, there are still ways to move forward on crypto regulation. With lawmakers returning from their August recess, time is running out for the bill, which aims to establish clear guidelines for the industry.
The company's analysis suggests that while passage of the bill remains technically possible, it's becoming increasingly difficult due to the Senate calendar and upcoming midterm elections. As a result, Grayscale argues that regulatory agencies such as the CFTC and SEC can continue developing rules and interpretations governing the market even without new legislation.
The CFTC and SEC have already become more accommodating towards the crypto industry in recent years, allowing them to address key issues like tokenized securities, custody, and trading. However, these watchdogs are still limited in what they can accomplish without new legislation, particularly when it comes to establishing permanent jurisdictional boundaries between themselves.
Institutional involvement in the crypto market has skyrocketed over the past few years, with spot ETFs, stablecoins, and growing Wall Street participation. The GENIUS Act already provided a federal framework for payment stablecoins, which was a major win, according to Grayscale's Head of Research, Zach Pandl.
The bill's stagnation has harmed expectations for passage this year, with Galaxy Research cutting the probability from 50% to just 30%. However, Thune's cloture on September 15 could bring some hope. The procedural vote requires 60 votes, and if it passes, senators can advance toward formally considering the legislation.