Here's what a CLARITY-free crypto market structure looks like

• Key takeaway: As the likelihood of the CLARITY Act passing dims, agencies such as the SEC and CFTC are exploring crypto-related rulemaking. But industry stakeholders warn that regulations are easier to rescind than laws, raising questions about their long-term durability. 
• Expert quote: "I had roughly 40% odds on this becoming law this year, and now I'm down to 25% ... maybe even trending lower." —Ian Katz, managing director of Capital Alpha Partners
• What's at stake: If the act does not pass then issues such as crypto firms offering yield on stablecoins  will be resolved through rulemaking, but whether that benefits banks remains to be seen.

With prospects for the much-anticipated crypto market structure legislation dimming, some agencies are starting to chart a course for their own rulemaking.

Processing Content

The Securities and Exchange Commission has begun moving forward with crypto rulemaking, while the Commodity Futures Trading Commission has signaled it could pursue its own rules if the CLARITY Act fails to pass.

"I had roughly 40% odds on this becoming law this year, and now I'm down to 25% ... maybe even trending lower," said Ian Katz, managing director of Capital Alpha Partners.