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The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are separately advancing rulemaking for the digital assets market.
Previously, the U.S. Senate voted on September 15 to block the key Digital Asset Market Clarity Act (H.R. 3633). The bill failed to pass with 49 votes in favor and 50 against, with points of contention including government officials holding crypto assets and the regulation of stablecoins.
Lawmakers failed to pass the bill, leaving the industry without clear guidance ahead of the November midterm elections. In this context, regulators have indicated that they intend to use existing administrative resources to fill the legal vacuum.
Without waiting for Congress to reach a compromise, these agencies have accelerated their rulemaking efforts:
- SEC action: The commission is advancing a proposal titled Regulation Crypto Assets, which aims to introduce more flexible registration exemptions for crypto startups, with upper limits of $5 million and $75 million. The public comment period for this proposal will remain open until October 20. A shift in direction is also evident within the agency: Commissioner Hester Peirce publicly described the previous stringent approach as “treating investors like children.”
- CFTC Plan: Chairman Michael Selig confirmed that the agency is using its existing authority to shape market structure. The agency has updated its rules regarding the accounting treatment of tokenized assets and has submitted a comprehensive regulatory proposal to the White House for approval.
- Project Crypto: Regulatory actions are being coordinated under an interagency agreement that categorizes digital assets into five fundamental classes, ranging from digital commodities to securities.
As cryptocurrency prices approach local highs, companies turn to lobbying.
Following the failure of the bill, leadership changes also occurred within major industry organizations. Summer Mersinger, CEO of the Blockchain Association, announced she will step down on October 16; Kristin Smith will succeed her.
Meanwhile, major crypto companies are increasing their direct influence on the electoral process. Coinbase CEO Brian Armstrong and the Stand With Crypto coalition have launched a voter mobilization effort framing fintech development as a bipartisan national security issue.
Meanwhile, financial markets have responded to regulatory changes with restraint and a slightly optimistic outlook. Amid expectations that the SEC and CFTC will take over, Bitcoin has remained stable, trading between $84,000 and $86,000.
Major altcoins, including XRP and NEAR, also remain near local highs. Holders hope that institutional guidance will provide the market with the necessary legal clarity faster and more smoothly than the stagnant Congress.