Regulators Charge Ahead with New Crypto Rules After CLARITY Act Stalls

The CLARITY Act stalled in the Senate after a vote on September 15, but regulators are moving ahead to create new crypto rules. SEC Chair Paul Atkins and CFTC Chair Michael Selig have pledged to act decisively within their existing statutory authority.

Atkins had previously launched Project Crypto to modernize SEC regulation for blockchain-based markets, and in March, the two agencies issued an interpretation explaining how existing securities laws apply to different categories of crypto assets. The CFTC is preparing broader rules around commodity-market trading and derivatives.

The SEC has already proposed one major package of rules, 'Regulation Crypto Assets,' which would create two exemptions for certain investment-contract offerings involving crypto assets. A temporary exemption for tokenized U.S.-listed stocks was issued on September 17, allowing them to trade on blockchain-based venues without being treated as traditional securities exchanges.