SEC Prepares Own Crypto Rules as CLARITY Act Stalls

The US Securities and Exchange Commission (SEC) is prepared to create its own digital-asset regulatory framework if Congress fails to pass the CLARITY Act. The bill aims to establish a broader regulatory framework for the US digital-asset market, including defining the jurisdiction of the SEC and the Commodity Futures Trading Commission (CFTC) over digital assets.

The CLARITY Act is currently being discussed in the US Senate, but a final agreement has not been reached due to disagreements over issues such as ethics provisions that would restrict senior government officials' involvement in crypto businesses. The SEC said it could move to draft rules to govern the digital-asset market if Congress does not act on the CLARITY Act.

This development highlights the ongoing efforts of regulators to establish a clear framework for the regulation of digital assets. If the SEC is forced to create its own framework, it would likely have significant implications for the crypto industry and investors.