No CLARITY Act? Here’s how U.S. regulators are moving crypto forward

In the 10 days since, US regulators have put out more crypto policy than Congress managed in two years.

How crypto moves forward without the CLARITY Act

U.S. regulators are considering frameworks for crypto exchanges, leveraged trading, stablecoins, and blockchain-based recordkeeping. Additionally, the Fed’s proposed GENIUS Act rules would also establish requirements for stablecoin reserves and risk management.

At the same time, traditional financial assets such as stocks, funds, and Treasury-backed products are increasingly being represented and traded on blockchains.

However, these regulatory steps are not equivalent to a permanent law. Exemptions and regulatory guidance, according to SEC Chair Paul Atkins, can be changed or withdrawn in the future. So, while the industry may have a regulatory gap to fill right now, long-term certainty will still require legislation.

Looking beyond the CLARITY Act

Nate Geraci’s post reiterated the importance of the CLARITY Act when he said,

Here, the key point is that the failure of the CLARITY Act does not mean crypto regulation has stopped in the U.S.

The SEC and CFTC can still use powers already granted to them by Congress to address areas such as tokenized securities and crypto market infrastructure. In fact, SEC Commissioner Hester Peirce reiterated that these agencies have been doing this for nearly two years.