SEC and CFTC Forge Own Crypto Paths Amid Clarity Act Stalemate

The SEC and CFTC are forging their own paths in crypto regulation as the Digital Asset Market Clarity Act stalls out in the Senate. The bill, which would divide oversight of crypto markets between the two agencies, has yet to reach a floor vote despite clearing the House last year with bipartisan support.

Meanwhile, the SEC is moving forward on its own authority, proposing a new offering framework for investment contracts tied to digital assets. This 'Regulation Crypto' would give startups a lighter route to raising capital and create a pathway for tokens to graduate from securities status once their underlying network becomes decentralized enough.

CFTC Chairman Michael Selig has stated that his agency will act regardless of the outcome of the Clarity Act, with plans to write joint rules defining which agency controls which corner of the crypto market. The SEC's Paul Atkins has also signaled that the agency is close to unveiling an 'innovation exemption' for tokenized versions of stocks to trade around the clock on blockchain platforms.