Analysts at Bernstein anticipate that the SEC and CFTC will implement swift and aggressive rulemaking following the failure of the Digital Asset Market Clarity Act. The Senate rejected the cloture motion for the bill on Tuesday, making a re-vote unlikely due to time constraints and ethical concerns regarding the proposed legislation.
The agencies aim to compensate for the time spent on the failed bill by introducing new regulations. Expected measures include a token taxonomy for capital raising, protections for decentralized finance developers, and innovation exemptions for equity tokenization. The SEC also plans to address faster approval times for real-world asset perpetual futures.
Previously, on August 19, the SEC proposed a framework for investment contracts involving crypto assets. These rules include a safe harbor provision and exemptions allowing companies to issue up to $5 million in tokens over four years or up to $75 million within a 12-month period. SEC Chair Paul Atkins had previously signaled the agency's readiness to act if the CLARITY Act failed.
