Crypto for Advisors: The CLARITY Act failed, but the rules came anyway
Following the failure of the CLARITY Act in the U.S. Senate, financial regulators like the SEC and CFTC are independently creating rules for digital assets. The article explores whether this regulatory action can effectively replace comprehensive legislation.
Why it matters
The lack of clear federal legislation creates uncertainty for the crypto industry, forcing companies to navigate a patchwork of regulatory enforcement.
In today’s newsletter, Alex Tapscott of CMCC Global Capital Markets on the rules regulators are writing while Congress stalls, and how long that can hold.
Then, in “Ask an Expert,” Leo Mindyuk of ML Tech on what a client owns when they buy a tokenized stock.
Regulators have provided what Congress could not, providing a short-term boost and creating a longer-term risk.
On Sept. 15, the U.S. Senate had a chance to take a major step toward setting the rules of the road for digital assets and, by extension, the digital economy we are now entering.
The CLARITY Act failed to advance, meaning a comprehensive legislated framework for digital assets — including tokenized money, stocks, bonds, deeds and other assets — and the exchanges, brokers, issuers and intermediaries that deal in them would have to wait.
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