SEC Can Begin Crypto Rulemaking Before CLARITY Act Passage

A former SEC official has suggested that the agency can begin rulemaking for digital assets before the passage of the CLARITY Act. According to Anne Kelly, this would allow regulators to provide much-needed direction and clarity on how digital assets are classified and regulated. The CLARITY Act aims to clarify the regulatory status of digital assets and determine which are securities and which are commodities.

Kelly emphasized that the SEC can initiate rulemaking proactively, and if the CLARITY Act is later enacted, its provisions can be incorporated through additional rule proposals. This approach could bridge the gap between industry advocates pushing for faster action and regulators emphasizing the need for thorough deliberation.

The timeline for crypto regulation has been a point of contention, with stakeholders seeking earlier clarity on compliance requirements. Kelly's comments suggest that a proactive approach could foster innovation while ensuring investor protection.