SEC and CFTC draft crypto rules separately

TLDR

US regulators are moving ahead with their own crypto rulebooks after Congress stalled the Clarity Act, so the SEC and CFTC will draft separate, parallel frameworks for digital assets.

1. SEC Chair Paul Atkins and CFTC Chair Michael Selig both said their agencies will write crypto rules under existing authority, after the Clarity Act failed in the Senate.
2. Early moves include an SEC innovation exemption for tokenized stocks and CFTC relief for passive trading software, which could benefit Bitcoin (BTC), XRP (XRP) and other major assets but remain non?permanent.
3. The big question is durability and scope, so the next steps to watch are rule proposals, comment periods, court tests and any revival of comprehensive legislation dividing SEC and CFTC powers.

Deep Dive

1. Separate Rulebooks After Clarity Act Stalls

The Digital Asset Market Clarity Act, which aimed to define a federal crypto market structure and split oversight between the SEC and CFTC, failed to clear a key Senate vote and is effectively shelved for now. Analysts expect it will not return before the midterm elections.

In response, both agency heads have publicly committed to acting without Congress. SEC Chair Paul Atkins and CFTC Chair Michael Selig each said their agencies will independently draft crypto regulations using existing statutory powers, a stance detailed in a Yahoo Finance analysis.

This means rulemaking will proceed in two tracks. The SEC focuses on securities and fundraising rules, while the CFTC emphasizes commodity markets and derivatives, rather than a single unified statute.

2. Concrete Moves And Market Impact

The SEC has already released a five?year innovation exemption that lets qualifying venues trade tokenized US stocks onchain under defined safeguards, reducing burdens for tokenized securities platforms while keeping sanctions and issuer controls in place, as described by The Blocks coverage of the exemption.

On the CFTC side, staff issued no?action relief for passive software and wallet providers that connect users to regulated derivatives venues, clarifying when they do not need broker registration and potentially enabling more regulated perpetuals and futures access from crypto apps, according to a Cointelegraph report.

For markets, these steps support infrastructure and may help assets like Bitcoin and XRP by opening clearer paths to regulated spot and derivatives trading. However, JPMorgan and others warn that agency rules are less durable than legislation and can be rewritten by future commissions, a concern highlighted in a separate post?vote analysis.

3. What To Watch Next

Several regulatory threads now matter more than the stalled bill. The SECs broader Reg Crypto Assets proposals and offering rules are open for comment and could shape fundraising and token classifications for years.

The CFTC is evaluating market?structure rules for spot crypto exchanges and leveraged retail trading, which could formalize how US venues list and margin digital commodities like BTC and XRP.

At the same time, the Clarity Act or similar legislation could be revived after elections. Only a statute can permanently settle whether an asset sits under SEC or CFTC primary jurisdiction, so institutional capital will watch both rulebooks and Congress.

Conclusion

Regulation is shifting from a hoped?for single crypto law to parallel SEC and CFTC rulemaking. In practice, that means more concrete guidance and new products in the near term, but continued uncertainty about long?term classifications and jurisdiction. For crypto users and builders, the key edge is tracking these agency rules early, since they will define what is possible in US markets until Congress eventually catches up.