Regulators Take the Reins After CLARITY Act Fails in Senate
The CLARITY Act, which aimed to allocate regulatory responsibilities between the SEC and CFTC for digital assets, failed in the Senate with a 49-50 cloture vote. Despite this setback, J. Christopher Giancarlo, former chairman of the CFTC, believes that regulators can still create frameworks for crypto using their existing powers.
Giancarlo mentioned that Paul Atkins, chairman of the SEC, and Michael Selig, chairman of the CFTC, will continue to work on individual regulatory projects. The SEC has already proposed Regulation Crypto Assets, which provides a specific regime for certain crypto-based investment contracts.
The CFTC is also working on market structure rules for crypto based on current powers. Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse have called on the regulators to create clear rules for digital assets amid Congress's failure to pass a bill.