Bernstein Sees SEC, CFTC Rulemaking as Alternative Path to Crypto Clarity

Bernstein expects the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission to pursue “aggressive and swift” rulemaking after the Senate failed to advance the CLARITY Act, according to Coin Bureau.

The analysis suggests that the legislation is not the only potential route toward greater regulatory clarity for the cryptocurrency industry. Instead, agency-level rules could address several areas currently facing uncertainty, although Bernstein sees legislation as providing stronger protection against future policy reversals.

SEC and CFTC Could Move on Key Crypto Rules

According to Coin Bureau, Bernstein expects the SEC and CFTC to focus on several areas if lawmakers do not advance the CLARITY Act.

Among the areas identified are clearer rules governing crypto fundraising, protections for developers working on decentralized finance and self-custody technology, exemptions for tokenized stocks, and faster approvals for perpetual futures tied to real-world assets.

The areas span both securities and derivatives markets, placing the two agencies at the center of any regulatory response that follows the stalled legislation.

Bernstein's expectation is presented as an alternative route to addressing regulatory uncertainty rather than as a replacement for congressional legislation.

CLARITY Act Faces Uncertain Legislative Path

The Senate's failure to advance the CLARITY Act has raised questions over whether lawmakers will have enough time to revisit the legislation.

Coin Bureau said Bernstein considers another vote “UNLIKELY,” citing limited time and unresolved ethics concerns. The assessment reflects Bernstein's view of the legislative timetable rather than a confirmed decision by Congress not to reconsider the bill.

The CLARITY Act is intended to establish a broader framework for digital asset regulation, but the X post does not provide additional details about the provisions that prevented the Senate from advancing it.

Agency Rules Could Provide Near-Term Clarity

Without new legislation, regulatory agencies can still establish rules and guidance within their existing authorities. The scope of that approach, however, would depend on the agencies' legal authority and the specific rules they adopt.

The areas highlighted by Bernstein indicate that market participants could see regulatory developments even without a new congressional framework. Clearer treatment of fundraising, DeFi and self-custody developers, tokenized stocks and real-world asset perpetual futures would address several distinct areas of the crypto market.

Coin Bureau's summary does not indicate when the SEC or CFTC would issue any specific rules, nor does it identify particular proposals already scheduled for release.

Legislation Would Offer a Different Form of Protection

Bernstein's analysis distinguishes between regulatory action by agencies and protections established through legislation.

Agency rules could provide greater clarity within the existing regulatory framework, while legislation would establish requirements through Congress and could therefore offer stronger protection against future changes in administrative policy, according to the analysis cited by Coin Bureau.

For now, the key question is whether the SEC and CFTC will pursue the areas identified by Bernstein following the Senate's failure to advance the CLARITY Act, or whether lawmakers will eventually return to the legislation.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.