Regulators Step In as CLARITY Act Fails to Advance
The CLARITY Act, a comprehensive legislated framework for digital assets, failed to advance in the U.S. Senate. Despite this, regulators have moved to provide regulatory clarity for the industry.
The Securities and Exchange Commission (SEC) issued an 'Innovation Exemption' on September 15, allowing certain venues to trade tokenized U.S.-listed stocks onchain using automated market makers and liquidity pools.
The Commodity Futures Trading Commission (CFTC) has also provided relief to certain software providers and updated guidance around tokenized investments and blockchain-based recordkeeping.
Regulatory clarity is emerging as a substitute for legislative clarity, but experts warn that this clarity is limited and may not provide the same level of protection as legislation.
The industry is being given an opportunity to create facts on the ground, with the goal of demonstrating the effectiveness of blockchain technology in the productive economy.
However, if the industry fails to capitalize on this opportunity, it may be lost.