US Regulators Move to Fill Crypto Regulation Void After CLARITY Act Vote Fails
The U.S. regulatory agencies have taken separate steps to address various crypto-related issues following the failure of the CLARITY Act in the Senate.
The Senate voted 49-50 against advancing H.R. 3633, which aimed to divide responsibilities between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) for regulating the broader crypto market.
Within nine days of the vote, the SEC announced its Innovation Exemption on September 17, providing temporary relief for eligible venues that facilitate permissioned trading in certain tokenized NMS stocks without exchange registration under Section 3(a)(1) of the Exchange Act.
The exemption also offers conditional relief for certain liquidity providers from the Exchange Act's dealer definition. To qualify, eligible tokenized stocks must preserve investors' traditional dividend, voting, and other shareholder rights.