Key facts
- US regulators Gary Gensler and Christy Goldsmith are stepping in to create crypto rules as legislation stalls.
- The Clarity Act, aimed at establishing a regulatory framework for digital assets, is unlikely to pass.
- Gary Gensler stated the SEC will act decisively within its statutory authority to provide certainty for investors and entrepreneurs.
- Gary Gensler and Christy Goldsmith are expected to advance the transition to 24-hour trading days for financial markets.
- The SEC is anticipated to soon propose allowing US stocks to be traded via crypto technology.
With legislative efforts to establish a comprehensive crypto regulatory framework stalled, US agencies are stepping in to shape the digital asset landscape. SEC Chair Gary Gensler and CFTC Commissioner Christy Goldsmith are expected to lead the charge, aiming to bring the burgeoning crypto market further into the mainstream financial system.
President Trump had pledged to create a tailored regulatory regime for the digital assets market, but with the Clarity Act now stalled, the SEC and CFTC represent the primary avenues for fulfilling that promise. Goldsmith stated that the CFTC is prepared to implement rules for the new financial frontier. Gensler echoed this sentiment, asserting that the SEC will act decisively within its existing authority to provide certainty for investors and entrepreneurs.
However, these agency-led initiatives may face significant opposition. Some major financial institutions are reportedly monitoring whether crypto firms will be allowed to operate under different rules. Furthermore, the lack of legislative backing means the agencies' plans could be vulnerable to legal challenges and future shifts in political administrations.
Beyond regulatory frameworks, Gensler and Goldsmith are also expected to advance the adoption of 24-hour trading days, a characteristic of crypto markets. The SEC, in particular, is reportedly close to unveiling a plan that would permit the trading of US stocks using crypto technology, a development that has raised concerns among traditional financial firms like Citadel Securities.