Kristin Smith, president of the Solana Policy Institute and interim CEO of the Blockchain Association, stated that the crypto industry is making progress in Washington despite the failure of the Clarity Act in the Senate. She noted that the sector has already secured the Genius Act, which focuses on stablecoins, and achieved modifications to an Internal Revenue Service broker rule.
The Commodity Futures Trading Commission has initiated a public comment period regarding regulations for leveraged retail crypto trading. According to Smith, the rulemaking processes at both the Securities and Exchange Commission and the Commodity Futures Trading Commission typically span 18 to 24 months.
Smith emphasized the importance of timing, noting that federal regulations finalized before summer 2028 may be difficult to overturn. While the Congressional Review Act allows Congress to reverse recent agency rules, regulations established before this window are expected to be more durable. Traditional financial institutions and international firms are expected to build upon these finalized rules.
The potential for a revival of the Clarity Act before the November midterm elections or during the subsequent lame-duck session remains uncertain. Smith identified the president's family crypto business and the current stance of banks as significant obstacles that are unlikely to be resolved by the end of the year. Matt Hougan, Chief Investment Officer at Bitwise, noted that regulatory outcomes remain dependent on agency actions.
