Even if CLARITY, a bill that would have imposed a broader definition of market structure, does not become law, U.S. regulators can still provide clear guidelines to the crypto industry.
It is worth noting that the U.S. Securities and Exchange Commission, or SEC as it’s also known, has published interpretive guidelines on how federal securities laws can be applied to certain crypto-assets.
Bloomberg is reviewing the guidance at White House. reporting that it will establish a ‘token taxonomy’ to help categorize crypto assets that fall under SEC jurisdiction.
A spokesperson for the SEC clarified this further.
“As Chairman Atkins said, the Commission will consider interpretive guidance around a token taxonomy for crypto assets – in line with market structure legislation – to ensure that investors and innovators have a clear understanding of their regulatory obligations.”
Note that this proposal is distinct from the SEC’s proposed rules on crypto-asset offerings.
Nate Geraci of ETF Prime is a fan. move This would prove to be a positive outcome, especially in the event that CLARITY does not pass.
“CLARITY Act would be better, but SEC apparently not waiting around for politicians to figure out how to classify crypto assets…”
Source: X
A regulatory framework with such clarity could be a viable option for crypto companies to comply with disclosure obligations, register with regulators and interact with investors.
In fact, some analysts who viewed the CLARITY Act as a ‘bad bill’ advocated for this route to safeguard the market.
CFTC advocates for the prediction market rule
The Commodity Futures Trading Commission, which oversees derivatives, also pledged clear rules to govern the booming prediction market.
The CFTC, like the SEC also submitted Proposal for a rule for prediction markets worth billions of dollars.
CFTC chairman Mike Selig has also promised to release crypto-perp guidelines next month. These regulatory measures could enable key players to continue to work even if CLARITY fails to reach the finish line.
It is true that the bill had been stalled at the beginning of the year when crypto and banking failed to come up with a deal on stablecoin yields.
The White House is openly criticizing the White House. criticized Banks were criticized for taking a hardline position on the stablecoin reward system and siding with crypto companies. This ongoing dispute could hinder the ability to gain full bipartisan approval for this bill.
The current crypto regulators could still provide the players with the guidelines they need to follow the rules of the road.
Final summary
- The SEC published proposed guidelines regarding the treatment of crypto assets which fall under federal securities law.
- CFTC also pushed for rules for prediction markets, with experts billing the updates as ‘better’ if the CLARITY Act stalls.
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Source: ambcrypto.com
