With comprehensive market-structure legislation stuck in the Senate, federal regulators are moving to write their own crypto rules
Federal financial regulators under the Trump administration are moving to shape crypto policy through agency action rather than wait for Congress. Reports indicate the Securities and Exchange Commission and the Commodity Futures Trading Commission are each preparing to develop their own rules for digital asset markets.
The development comes as the CLARITY Act, a bill intended to establish comprehensive market-structure rules for cryptocurrencies, remains stalled in the Senate. The legislation had been viewed by many in the industry as the clearest path toward a unified federal framework covering how digital assets are classified, traded, and custodied.
Without that legislation moving forward, regulators appear to be stepping in to fill the gap. The SEC and CFTC have long shared, and at times disputed, jurisdiction over digital assets. The SEC generally oversees securities, while the CFTC regulates commodities and derivatives markets. Crypto assets have frequently fallen into a gray zone between the two.
The CLARITY Act was designed in part to resolve that jurisdictional ambiguity by defining which assets fall under which regulator. Its stall in the Senate leaves that question unresolved through legislation, at least for now. Agency-level rulemaking could offer a faster, though potentially less durable, alternative.
Rulemaking by the SEC and CFTC would not carry the same permanence as a statute passed by Congress. Agency rules can be more easily reversed by future administrations or challenged in court. Still, they could provide near-term guidance for exchanges, custodians, and issuers operating in the United States.
The push for agency-driven rules also reflects broader signals from the Trump administration favoring a more accommodating regulatory posture toward digital assets. Industry participants have pressed for clearer rules for years, arguing that uncertainty around classification and custody has slowed institutional adoption.
It remains unclear how quickly the SEC and CFTC could produce formal proposals, or how detailed those rules might be. Agency rulemaking typically involves public comment periods and can take months or longer before taking effect.
Market Impact
Any move toward agency-level crypto rules could offer near-term clarity for market participants who have waited years for defined custody and trading standards. Exchanges, custodians, and asset issuers may watch closely for signals on how the SEC and CFTC plan to divide oversight responsibilities.
However, rules written by regulators rather than passed by Congress carry less permanence. They can be revised or challenged more easily than statutory law, which may temper how much certainty markets ultimately gain from this approach. Investors and firms may continue to view the stalled CLARITY Act as the more durable long-term solution, even as agencies act in the interim.
The stalled CLARITY Act leaves crypto's core jurisdictional questions unresolved by Congress for now. Agency action from the SEC and CFTC may offer interim guidance, but a lasting legislative framework still appears some way off.
Frequently Asked Questions
What is the CLARITY Act?
The CLARITY Act is proposed legislation aimed at establishing comprehensive market-structure rules for cryptocurrencies in the United States, including how digital assets are classified and regulated.
Why are the SEC and CFTC developing their own crypto rules?
Reports indicate the two agencies are moving to write rules independently because the CLARITY Act has stalled in the Senate, leaving key regulatory questions unresolved through legislation.
How do SEC and CFTC rules differ from a law like the CLARITY Act?
Agency rules can be issued more quickly but are generally less permanent than statutes, since they can be revised or challenged by future administrations or courts.
What happens to the CLARITY Act now?
The bill remains stalled in the Senate, and its future timeline is unclear based on current reporting.
