SEC and CFTC Set to Introduce Aggressive Rulemaking Following CLARITY Act Failure
Bernstein analysts expect 'aggressive and swift' rulemaking from the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), following the failure of the Digital Asset Market Clarity (CLARITY) Act to pass a Senate cloture vote on Tuesday. The regulatory agencies will publish new regulations to make up for the time lost negotiating the CLARITY Act, according to Bernstein's analysts.
The proposed rules aim to provide clarity and exemptions for entities raising capital through digital assets, while preserving investor protections. This includes token taxonomy for raising capital, developer protection measures concerning decentralized finance and self-custodial protocols, innovation exemptions for equity tokenization, faster approval times for real-world asset perpetual futures, and amendments to rules around federal sports event contracts and their classification as swaps.
The failure of the CLARITY Act has led Bernstein's analysts to expect 'aggressive and swift' rulemaking from the SEC and CFTC. The proposed rules offer crypto companies exemptions allowing the issuance of up to $5 million in tokens during four years and up to $75 million during 12 months, as well as a safe harbor exempting cryptocurrencies from being treated as investment contracts.