The CLARITY Act is designed to divide crypto oversight between the SEC and CFTC, clarifying which agency oversees what. It's been a top legislative priority for the crypto industry since 2024.
The stall deflated the legislative tailwind that lifted crypto prices in July. Tokens like XRP had surged on optimism that CLARITY would pass. The postponement signals political gridlock on crypto policy.
With Congress stalled, the SEC is moving forward with its own rulemaking. On August 14, it will propose Regulation Crypto to give projects a clearer path to raise capital without SEC registration.
Congress remains divided on crypto policy. The White House, Senate, and crypto industry haven't aligned on a unified approach. SEC rulemaking provides short-term clarity, but legislative action remains uncertain.
Watch for CLARITY Act action after September. In the meantime, the SEC's framework will be the primary source of regulatory clarity. A bifurcated approach—SEC rulemaking plus eventual Congressional action—may emerge.
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