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US Regulators Step In to Shape Crypto Policy Amid Congressional Gridlock

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The US regulatory landscape for cryptocurrencies is shifting as Congress stalls on market framework legislation. Federal agencies are taking the lead in setting rules, providing near-term clarity but also increasing vulnerability to political change and future legal challenges.

The Securities and Exchange Commission (SEC) plans to advance rules exempting certain token offerings from securities requirements within weeks, while the Commodity Futures Trading Commission (CFTC) is set to discuss crypto regulation at an industry event this week. However, industry analysts warn that only Congress can create a durable legal framework.

Josh Riezman, chief legal and strategy officer at crypto trading firm GSR, notes that any regulatory gains for the sector could be reversed by a later administration or challenged in court, leaving uncertainty in place. A CFTC spokesperson emphasizes the importance of the Clarity Act for American competitiveness and urges Congress to set durable rules.

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