Regulators Rush in After Crypto Clarity Act Stalls
The US regulatory landscape for digital assets has undergone significant changes in the aftermath of the failed Crypto Clarity Act vote in the Senate. Rather than waiting on Congress, regulators have been actively working to address the same issues through existing statutory authority.
On September 17, the SEC issued its 'Innovation Exemption' for tokenized stock trading, allowing venues to trade tokenized National Market System stocks using permissioned automated market makers. This exemption comes with strict guidelines, including limits on trading volume and requirements that tokenized stock carry the same rights as traditional shares.
The CFTC also took swift action, issuing a no-action position for providers of passive software on September 17. This means developers building trading software won't face enforcement for failing to register as introducing brokers if they meet specified conditions tied to how their software connects users to registered futures commission merchants and exchanges.
Over the next few days, the CFTC continued advancing new crypto market rules, sending them into White House review. On September 22, CFTC Chairman Michael Selig delivered keynote remarks at the U.S. Treasury Market Conference, outlining the agency's vision for 'mass tokenization' and a shift toward 24/7, continuous trading.
The SEC Commissioner Hester Peirce also weighed in on September 23, delivering remarks at SIFMA's Digital Assets Conference. The next day, September 24, brought a significant development as the Federal Reserve Board requested public comment on two separate proposals establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act.
The proposals require stablecoin issuers to fully back their tokens with reserve assets and standardize capital and risk management requirements. The public comment period runs 60 days after Federal Register publication.