Regulators Take Charge Amid Senate's Failure to Pass Crypto Bill
The US Senate's failure to pass the Digital Asset Market Clarity Act has led regulators to fill the legal vacuum using their administrative resources. The SEC is advancing a proposed Regulation Crypto Assets, which would introduce flexible registration exemptions for crypto startups with limits of up to $5 million and $75 million. Public hearings on the proposal will continue through October 20.
Commissioner Hester Peirce has publicly called previous hard-line approaches 'infantilizing investors'. The CFTC is also taking steps, using its current authority to shape the market structure. Chairman Michael Selig confirmed that the agency has updated its rules for accounting for tokenized assets and sent a comprehensive regulatory proposal to the White House for approval.
The regulators' actions are being coordinated under an interagency agreement that divides digital assets into five basic categories, from digital commodities to securities. Major crypto firms are stepping up their direct influence on the electoral process, with Coinbase CEO Brian Armstrong launching a voter mobilization campaign presenting fintech development as a bipartisan national security issue.