SEC and CFTC Are Building Crypto Rules Without Congress

The failure of the CLARITY Act in the Senate did not stop the U.S. crypto regulatory process.

Instead, the SEC and CFTC have continued working on their own framework for digital assets.

SEC and CFTC Crypto Guidance Is Expanding

The agencies have already been issuing new guidance and clarifying existing rules.

In August, the SEC proposed Regulation Crypto Assets, a framework designed specifically for certain crypto-related offerings and investment contracts.

The CFTC has also continued updating its guidance. On September 24, the agency updated its crypto FAQ to provide additional clarity around tokenized assets, blockchain recordkeeping and related activities.

This suggests that U.S. crypto regulation is moving forward even while Congress struggles to advance comprehensive market-structure legislation.

What Happens If CLARITY Stays Stuck?

The CLARITY Act would provide a much broader statutory framework, so agency guidance cannot completely replace legislation.

But regulators don’t necessarily have to wait indefinitely.

The SEC and CFTC already have significant authority over different parts of the financial system, allowing them to clarify how existing laws apply to crypto.

In March, both agencies had already issued coordinated guidance on how federal securities laws apply to certain crypto assets and transactions.

For Ethereum and the wider crypto market, this could mean one thing:

Regulatory clarity may arrive piece by piece rather than through one giant bill.

And for investors watching ETH, that may be just as important as what happens next with CLARITY.