SEC and CFTC to write crypto rules as Clarity Act stalls in Senate - qz.com

With the Clarity Act stalled in the Senate, the SEC and CFTC are set to fill the regulatory gap themselves. The bill, which aimed to define which digital assets fall under each agency’s jurisdiction, will not provide a statutory roadmap for now. Instead, the two regulators will proceed with their own rulemaking efforts.

Agency-driven rules are typically more incremental than legislation, but they can still address core questions such as whether a token is a security or a commodity. That distinction determines which agency oversees a given asset and which set of compliance rules applies. For exchanges, custodians, and other market participants, such clarity is critical, as they currently operate under overlapping and sometimes conflicting interpretations.

What matters now is the pace and scope of the proposed rules. Market participants should watch for public comment periods and any formal coordination between the SEC and CFTC. Even partial clarity could reduce compliance costs and encourage broader institutional involvement, but the rulemaking process itself may introduce new uncertainties. No outcome is guaranteed.