Crypto regulatory clarity matters more for banks, ex-CFTC chief says
Summary
The potential failure of the CLARITY Act may lead SEC's Paul Atkins and CFTC's Mike Selig to establish new regulations aimed at providing clarity for the industry, according to insights from Giancarlo.
Key Insights
What is the CLARITY Act and what does it aim to achieve?
The Digital Asset Market Clarity Act of 2025 (H.R. 3633) is a bipartisan bill that passed the House 294-134, seeking to divide regulatory authority between the SEC and CFTC for digital assets: CFTC gains exclusive jurisdiction over spot markets for 'digital commodities' like sufficiently decentralized tokens (e.g., BTC, ETH), while the SEC retains oversight of 'investment contract assets' (digital asset securities). It includes a 'mature blockchain test' for tokens where no single entity controls 20%+ of supply or governance to qualify as digital commodities, and mandates joint rulemaking.
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Why might the CLARITY Act fail, and what could happen next according to insights?
The CLARITY Act faced a delay in Senate markup on January 14, 2026, after industry participants withdrew support for revised text, with no new date set; ongoing issues include stablecoin rewards and DeFi provisions amid GENIUS Act rulemaking. Its potential failure could prompt SEC's Paul Atkins and CFTC's Mike Selig to establish new regulations for industry clarity.