U.S. regulators rush to write crypto rulebook after Clarity Act stalls in Senate

State and federal regulators are rushing to fill the void in U.S. cryptocurrency regulation after the Clarity Act, a comprehensive set of proposed rules for digital assets, stalled in the Senate.

Just two days after the Clarity Act failed to advance in the Senate, the Securities and Exchange Commission expanded its crypto rulebook under its existing authority. The agency issued an order creating a temporary pathway for trading certain tokenized stocks, inching financial markets closer to 24/7 trading.

The same day, the Commodity Futures Trading Commission submitted a crypto rulemaking proposal to the White House for review. The details of the proposal weren't made public, but a post by the Office of Management and Budget confirmed the rules were pending review.

The crypto industry, which had supported the Clarity Act, says it is eager for regulatory guidelines for the developing industry, as it has worked to shape the regulatory environment to its liking.

"When you're thinking about traditional finance entering in and using some of this technology, they're being held back right now because there is this regulatory uncertainty," Summer Mersinger, CEO of the Blockchain Association and a former CFTC commissioner, said. "Having the regulators provide some sort of certainty is going to really open up the industry to more investment, more integration into traditional finance, and really grow the sector."