Bernstein Predicts SEC and CFTC to Accelerate Crypto Rulemaking After CLARITY Act Fails

The U.S. Senate’s failure to advance the Digital Asset Market Clarity (CLARITY) Act has prompted expectations of faster, more direct rulemaking from the SEC and CFTC, according to analysts at Bernstein. With the bill not moving forward after a cloture vote on Tuesday, Bernstein said regulators are likely to “make up for the time lost” in developing their own frameworks for crypto markets.

In a Wednesday note shared with Cointelegraph, Bernstein argued the shift could still deliver meaningful regulatory guidance for the industry, even if the legislative approach that would have “fool-proofed the industry against political regime shifts” did not materialize. The analysts expect new agency rules to address issues ranging from how tokens are categorized to how certain decentralized finance (DeFi) activities might be treated.

Key takeaways

• With CLARITY failing to clear a cloture vote, Bernstein expects the SEC and CFTC to accelerate rulemaking instead of relying on a new statutory framework.
• New guidance may include token taxonomy for fundraising and investor protections aimed at developers and self-custodial protocols.
• Bernstein anticipates “innovation exemptions” that could support equity tokenization efforts under defined conditions.
• The SEC’s earlier proposal to clarify treatment of certain “investment contracts” provides a starting point for how regulators may structure safer harbors.