SEC and CFTC Press On with Crypto Rules Amid Clarity Act Uncertainty

The SEC and CFTC are expected to continue shaping US crypto regulation even if the Clarity Act fails to pass before its August recess. According to a Bernstein research note, analysts believe that the direction of US crypto regulation is no longer tied exclusively to Congress.

The two agencies have already begun building a more coordinated framework through Project Crypto and are expected to continue this work regardless of whether the legislation advances.

The Clarity Act's failure would likely weigh on crypto markets in the near term, but Bernstein analysts argue that the SEC and CFTC can keep expanding the federal framework through coordinated action. They expect continued interpretive guidance offering clearer digital asset classifications and setting expectations for decentralized finance and self-custody.

The initiative, known as Project Crypto, aims to align oversight and reduce jurisdictional overlap between the two agencies. It has already taken shape this year with SEC Chair Paul Atkins and CFTC Chair Michael Selig launching a joint harmonization push.