How Crypto Stopped Waiting for Congress and Learned to Love the Regulators

The Senate’s procedural defeat of the Clarity Act shifted the focus of cryptocurrency regulation from Congress to federal agencies. Within 48 hours, the SEC, CFTC and the Federal Reserve each announced new initiatives aimed at filling the legislative gap.

SEC launches an innovation exemption

SEC Chairman Paul Atkins introduced a tokenized‑stock “innovation exemption.” The framework permits qualifying venues to trade tokenized U.S. stocks on‑chain without registering as national securities exchanges.

CFTC issues no‑action relief and a rulemaking request

The CFTC issued a no‑action position allowing passive software providers, such as crypto wallet apps, to give users access to regulated derivatives without registering as introducing brokers. The agency also forwarded a broader crypto‑markets rulemaking to the White House for review.

Federal Reserve proposes stablecoin reserve rules

The Fed proposed rules requiring stablecoin issuers it oversees to fully back tokens with safe, liquid assets and to hold capital against operational risks. This proposal is part of the multi‑agency rollout of the GENIUS Act, a stablecoin law signed in 2025.

Industry response

Industry leaders, including Solana Policy Institute President Kristin Smith, have described the regulatory path as “more viable” and indicated that the sector is now looking to agencies for guidance.

Implications

Agency rulemaking is generally slower to develop, more susceptible to legal challenges, and can be more easily altered by future administrations than legislation passed by Congress.