SEC and CFTC Move Forward with Cryptocurrency Rulemaking Despite Congressional Gridlock
The collapse of the CLARITY Act in the Senate has not stalled regulatory efforts on cryptocurrency. The SEC and CFTC have accelerated their rulemaking process, with the CFTC filing a crypto market structure proposal just two days after the bill's defeat.
According to the source, the CFTC submitted its proposal (RIN 3038-AF80) to the White House Office of Information and Regulatory Affairs. The agency has stated that it intends to codify its oversight with a binding rule by late 2027. CFTC Chair Michael Selig said on the day the bill died, 'We are locked in and ready to ship rules.'
The SEC had already proposed Regulation Crypto Assets (Release 33-11434) in August, which includes a $5 million startup exemption, tiered fundraising exemptions modeled on Regulation A ($20 million and $75 million tiers), an investment contract safe harbor defining when the contract ceases to exist, and state law preemption for primary offerings. Comments close October 20.
SEC Chair Paul Atkins has stated that the commission will press ahead under existing authority, saying 'It also acknowledges what the former administration refused to recognize, that most crypto assets are not themselves securities.'