Regulators Prepare for Action as CLARITY Act Stalls

U.S. crypto regulations are expected to gain momentum even if the CLARITY Act stalls in Congress, according to research and brokerage firm Bernstein.

The proposed federal legislation aims to clarify the regulatory jurisdiction of the SEC and CFTC over digital assets, but its prospects for passage this year remain uncertain due to a tight legislative calendar and competing priorities.

In the absence of congressional action, regulators are likely to advance their own rulemaking efforts, including a joint initiative called Project Crypto. This program would develop comprehensive guidelines covering token classification standards, decentralized finance (DeFi), self-custody rules, and innovation exemptions.

The goal of Project Crypto is to provide clarity without waiting for new legislation, aligning with the Trump administration's stated goal of positioning the United States as the global hub for digital assets.