US Regulators Step Up Efforts to Clarify Cryptoasset Rules Amid CLARITY Act Failure
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have stepped up efforts to bring clarity and confidence to cryptoasset markets after Congress's failure to pass the CLARITY Act. The act aimed to provide a framework for market participants, but it stalled in the Senate on September 15.
The SEC responded by issuing its long-awaited 'Innovation Exemption' on September 17. This exemption grants temporary and conditional relief from US securities laws for Tokenized Securities Venues (TSVs) that engage in secondary market trading of tokenized stocks using permissioned automated market maker (AMM) liquidity pools.
The CFTC also issued a set of FAQs providing clarity to CFTC-registered firms regarding the permissibility of investing customer funds in tokenized investments, as well as standards for using public blockchains to satisfy recordkeeping requirements. Additionally, the CFTC submitted a proposal to consider draft rules on cryptoassets and issued a no-action letter indicating it will not take enforcement action against passive software providers that do not register as introducing brokers.