Bernstein Expects Aggressive SEC, CFTC Rulemaking After CLARITY Act Fails

The failure of the CLARITY Act shifts the venue for crypto market structure from Congress to the agencies, which changes the character of the rulemaking: statutory text negotiated with industry input gives way to regulator-drafted rules that can move faster but are more exposed to legal challenge and reversal. The practical effect lands on firms waiting on definitions for tokens, exchanges and derivatives, since agency rulemaking can advance without the legislative bargain that stalled. The open question is whether the SEC and CFTC coordinate on overlapping jurisdiction or diverge, and how much of any final rule survives judicial scrutiny.