Regulatory Pathway Emerges for Crypto Amid Lagging Legislation

The chances of crypto market structure legislation in the US Congress this year are dwindling. Kristin Smith, president of the Solana Policy Institute, believes that the 'Clarity Act' has missed its window and that a regulatory pathway is now the focus.

With 67 million Americans holding and using cryptocurrency, there's a growing need for regulations. The regulators are stepping up to fill the gaps in existing laws.

Smith noted that the regulatory world already has some framework in place with obligations on intermediaries under the Bank Secrecy Act and rulemakings related to payment stablecoin issuers.

The SEC and CFTC have expressed a readiness to regulate parts of the ecosystem, particularly tokenization of securities and derivatives. Smith sees this as a piecemeal approach that will cover most critical public policy goals.