Regulators Fill the Void Left by Failing CLARITY Act

The CLARITY Act failed to pass in Congress, but regulators have stepped in with their own rules for digital assets.

This has provided a short-term boost, but also creates a longer-term risk for advisors and investors.

Regulators, including the SEC and CFTC, have been busy issuing exemptions, providing relief to certain software providers, and updating guidance around tokenized investments and blockchain-based recordkeeping.

The question now is whether regulatory clarity can substitute for legislative clarity, and if so, for how long.