Bernstein analysts expect US regulators to move quickly with new crypto rules after the CLARITY Act failed to advance in the Senate on Tuesday.
The analysts believe the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will introduce new regulations to compensate for time spent negotiating the stalled legislation.
SEC and CFTC Could Accelerate Crypto Rulemaking
According to a Wednesday note shared with Cointelegraph, Bernstein expects “aggressive and swift” rulemaking from both federal agencies following the failure of the Digital Asset Market Clarity (CLARITY) Act.
The analysts said regulators are likely to move faster in several key areas of the digital asset market.
These could include clearer token classifications for capital raising, stronger protections for decentralized finance developers and self-custodial protocols, and innovation exemptions related to tokenized equities.
Bernstein also expects regulators to pursue faster approval processes for real-world asset perpetual futures. In addition, agencies could revise rules surrounding federal sports event contracts and whether they should be classified as swaps.
Regulators May Seek Greater Crypto Clarity
Bernstein believes the SEC and CFTC will now play a larger role in providing regulatory clarity to the crypto industry.
The analysts said this could help offset the absence of the CLARITY Act. The legislation was designed to establish a more durable regulatory framework that could withstand changes in the US political environment.
However, the bill failed to clear a Senate cloture vote on Tuesday.
The CLARITY Act would have created one of the first comprehensive federal regulatory frameworks for digital assets in the United States.
Bernstein analysts said another vote appears unlikely in the near term. They pointed to the limited legislative timetable and concerns surrounding the bill’s ethics provisions.
SEC Has Already Proposed New Crypto Rules
The SEC has already taken steps toward establishing a clearer regulatory framework for digital assets.
On Aug. 19, the agency proposed new rules aimed at creating what it described as a clearer and more appropriate framework for certain investment contracts involving crypto assets.
The proposal seeks to allow crypto companies to raise capital while maintaining investor protections.
Under the proposed framework, eligible companies could receive exemptions allowing them to issue up to $5 million in tokens over four years.
Other exemptions could permit issuances of up to $75 million over a 12-month period.
The proposal also includes a potential safe harbor that could prevent certain cryptocurrencies from automatically being treated as investment contracts.
SEC Chair Previously Signaled Readiness to Act
SEC Chair Paul Atkins had previously indicated that the agency was prepared to move forward with its own digital asset rules if Congress failed to pass the CLARITY Act.
Speaking to CNBC on July 27, Atkins said the SEC was ready to introduce regulations for the crypto market if the Senate did not advance the legislation.
With the CLARITY Act now facing significant legislative obstacles, attention may shift increasingly toward the SEC and CFTC as both agencies develop their own frameworks for the US digital asset industry.
