Regulators Gear Up for Accelerated Crypto Rulemaking

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are likely to accelerate their own cryptocurrency rulemaking efforts if the CLARITY Act fails to pass this year, according to Bernstein.

The CLARITY Act is a proposed federal legislation aimed at clarifying the regulatory jurisdiction of the SEC and CFTC over digital assets. If enacted, it would establish a clear framework for determining whether a cryptocurrency is a security or a commodity, which has long plagued the industry.

However, with the legislative calendar tight and competing priorities in Congress, the bill's prospects for passage this year remain uncertain. In the absence of congressional action, regulators will take matters into their own hands.