SEC and CFTC Forge Ahead with Crypto Rules Amid Congressional Gridlock

The SEC and CFTC are pushing forward with plans to write rules for the cryptocurrency industry, despite Congress's inability to pass the CLARITY Act. According to CFTC Chair Michael Selig, the agency has ready-to-go rule proposals that will be finalized before the current administration ends, regardless of whether Congress passes the bill.

SEC Commissioner Hester Peirce also stated that the SEC can continue with meaningful crypto rulemaking even if Congress fails to act. However, any rules created by the agencies would not be permanent and could be changed or reversed by a future administration.

The current status of CLARITY in Congress is that it was left untouched before its August recess, but Majority Leader John Thune has filed cloture on a motion to proceed, setting up a procedural vote around September 15 that requires 60 votes to advance the bill. The House already passed its own version of CLARITY last July.

Bitcoin remains the most legally clear major cryptocurrency asset due to its existing commodity treatment, but the regulatory uncertainty surrounding other assets, such as token issuers and exchanges, continues.