Former SEC Employee: Rulemaking Will Take Several Months After the CLARITY Act Passes

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Former SEC employee Anne Kelley said on August 14 that the CFT (Countering the Financing of Terrorism) framework will need to be addressed as part of the rulemaking process if the CLARITY Act passes. She noted that the SEC and CFTC will need several months to draft and implement rules. The upcoming meeting on tokenization exemptions is just the first step, followed by public comments. Formal rules must follow the APA. If the CLARITY Act passes during this period, regulators can issue an SNPRM. Kelley cited the GENIUS Act as an example, which has yet to be fully implemented. Risk-on assets may see regulatory clarity only after these steps are completed.

Odaily Planet Daily report: On August 14, former SEC staff member Anne Kelley posted that even if the CLARITY Act passes smoothly, the SEC and CFTC will still need to draft implementing regulations, a process that will take at least several months and will not take effect immediately.

Kelley stated that the SEC’s upcoming public meeting on tokenization innovation exemptions is only the first step in the proposed rulemaking process, with additional procedures such as public comment still required. Formal rules with legal enforceability must comply with the U.S. Administrative Procedure Act (APA) to ensure they can withstand judicial review.

If the CLARITY Act is passed during the rulemaking process, regulators do not need to start over; they can amend the existing proposal by issuing a supplemental notice of proposed rulemaking (SNPRM) and continue moving forward. Kelley cited the GENIUS Act as an example: although the bill was passed a year ago, it has yet to be fully implemented, partly because the accompanying rulemaking takes time.

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