Regulators Take Lead on Crypto Policy Amid Congressional Gridlock
US regulators have announced that they will continue to advance cryptocurrency policy without waiting for Congress. The move comes after the failure of the CLARITY Act, a bill aimed at establishing a comprehensive legal framework for digital assets.
In a shift in approach, White House crypto adviser Patrick Witt stated that the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will take the lead on advancing crypto policy. This means that regulators will rely on exemptions, guidance, and rulemaking to move forward with digital-asset regulation.
The SEC has already taken its first concrete step by introducing temporary, conditional relief for certain venues trading tokenized US stocks and qualifying liquidity providers. The five-year exemption allows these firms to operate without registering as national securities exchanges, provided they meet specific conditions.
CFTC Chair Michael Selig also emphasized the importance of preparing for 'mass tokenization,' onchain finance, and potentially continuous markets. He noted that blockchain technology could eventually support tokenization across all asset classes, changing how assets are recorded, transferred, or settled.