The failure of the Digital Asset Market Clarity Act to advance in the U.S. Senate has shifted attention back to regulators, with the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) now expected to shape the next stage of crypto-market rules. The change could accelerate tokenization, decentralized finance and institutional participation, but lawyers warn that agency action cannot provide the same lasting certainty as legislation.
Regulators move to fill the legislative gap
The SEC and CFTC have already begun pursuing measures that could expand regulated activity on blockchain-based markets. According to CoinDesk, the SEC’s five-year “Innovation Exemption,” introduced on September 17, allows qualifying venues to trade tokenized U.S. stocks through blockchain liquidity pools while the agency works toward permanent rules.
The CFTC followed on October 5 by seeking public feedback on leveraged retail crypto trading and a possible new registration category for crypto markets. That initiative begins a public-comment and rulemaking process; it does not immediately establish the proposed rules.
The SEC is also considering custody changes. Its October 1 proposal would allow state trust companies to safeguard customers’ crypto and, under certain conditions, enable advisers and funds to hold digital assets themselves.
Lev Breydo, an assistant professor of law at William & Mary Law School, said the debate over Clarity revealed disagreements inside the crypto industry. Issues including ethics requirements and a dispute over yield arrangements with community banks showed that definitions in legislation could benefit some participants while disadvantaging others.
Breydo expects the SEC to concentrate through 2027 on offering and custody rules and on expanding its tokenized-stock exemption. He also described the agencies’ joint interpretive release in March as an important foundation because it replaced earlier guidance and supports coordination under existing law.
A major issue remains unresolved: ordinary, unleveraged spot-market trading does not have comprehensive federal oversight. The CFTC retains anti-fraud and anti-manipulation authority, but broader supervision of spot markets was one of the central objectives of the stalled legislation.
Businesses see faster openings
Some executives believe the absence of a new statute could still create near-term commercial opportunities. Paul McCaffery, head of digital assets at investment bank KBW, said the SEC and CFTC are acting proactively and that the resulting clarity is contributing to mergers and acquisitions across digital assets, traditional financial services and fintech.
Matt Hougan, chief investment officer at Bitwise, said an agency-led approach could be more favorable in the short term than legislation that might have required years of additional rulemaking. He also expects more protocols to consider token buybacks, especially “buy-and-burn” structures, following SEC clarification that he said has increased investor confidence.
Developers are closely monitoring whether regulators distinguish between creating software and operating a financial intermediary. Cathy Yoon, chief legal officer at Solana-focused research and development company Temporal, said developers should be recognized as software creators rather than automatically treated as running securities businesses. She welcomed the SEC staff’s willingness to address the issue explicitly, while noting that staff frequently asked questions are not formal SEC rules.
Michael Lie, global head of digital assets at market maker Flow Traders, said comprehensive regulation is likely as finance moves toward continuous, 24-hour trading. He is watching the innovation exemption and potential changes to transfer-agent rules, while noting that regulatory regimes in Europe and Asia are also advancing.
The durability question
Legal specialists broadly expect progress to come incrementally, with implementation presenting the greatest challenge. Derek Lowrey, head of legal at Newton Labs, formerly known as Magic Labs, said the lack of legislation makes it more difficult to oversee venues, intermediaries, decentralized finance and spot markets. At the same time, existing requirements covering anti-money-laundering controls, sanctions and record-keeping provide compliant companies with a basis for continuing development.
Kevin Kreuser, general counsel at domain-name tokenization company D3, said tokenized real-world assets need clearer boundaries over which regulators have jurisdiction. In his view, agency action is useful but does not deliver the long-term certainty of a law passed by Congress.
Jim Petrila, chief legal officer at Dromos Labs, which develops Aerodrome and Velodrome, takes a more optimistic position. He said rising liquidity and the growth of tokenized securities on public blockchains could make the trend difficult to reverse within two years, making the outlook for decentralized finance more positive.
The advantages may not be distributed evenly. Hougan argued that the bill’s failure preserves a regulatory advantage for established platforms such as Coinbase and Kraken, potentially delaying competition that could reduce costs. The result is a market where experimentation may move faster, while questions about access, competition and the durability of regulatory decisions remain open.
Breydo said only Congress can create a comprehensive framework with statutory permanence.
Moneyiar market picture
Moneyiar market data at 09:39 on October 13, 2026, showed declines across the four listed assets:
- Solana (SOL): $107.0735322491, down 3.91% over 24 hours and 10.34% over seven days.
- eCash (XEC): $0.0000070137, down 3.12% over 24 hours and 13.04% over seven days.
- OpenLedger (OPEN): $0.1028116671, down 4.98% over 24 hours and 13.50% over seven days.
- Ark (ARK): $0.188706023, down 6.37% over 24 hours and 12.39% over seven days.
These figures describe the market snapshot at that time and do not resolve the broader regulatory questions facing U.S. crypto businesses.
