US Financial Authorities Take Action After Bill Fails...Begin Developing Independent Virtual Asset Regulations

▲ U.S. Securities and Exchange Commission (SEC), U.S. Commodity Futures Trading Commission (CFTC) / ChatGPT generated image

Following the legislative deadlock in the U.S. Congress, financial regulatory authorities have begun to formulate their own virtual asset regulations.

According to cryptocurrency specialized media U.Today on September 28 (local time), the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have directly started rulemaking to fill the void left by Congressional inaction. On September 15, the U.S. Senate failed to pass the critical U.S. Cryptocurrency Market Structure Bill (CLARITY Act) with a 49-50 vote. With a legislative vacuum created, regulatory agencies have stepped up to establish guidelines using their own administrative authority over the virtual asset market.

The SEC is pushing for a regulation that includes registration exemptions with limits of up to $5 million and $75 million. Public hearings on this regulation are scheduled to continue until October 20, and Commissioner Hester Peirce pointed out that the previous hardline stance treated investors like infants.

CFTC Chairman Michael Selig confirmed that the agency would reshape the market structure using its current authority. The CFTC has already streamlined accounting rules for tokenized assets and submitted a comprehensive regulatory proposal to the White House. Both agencies have entered into an inter-agency agreement classifying virtual assets into five basic categories, from digital commodities to securities.

Holders of major assets such as Bitcoin (BTC), XRP, and Ethereum (ETH) are keenly watching the practical impact of these regulatory changes. As regulatory actions accelerate, market participants are focusing on legal clarity as a result of institutional integration.

[Article Key Summary]

-As the U.S. Cryptocurrency Market Structure Bill failed to pass in the Senate, the SEC and CFTC have begun to develop their own regulatory proposals.

-The SEC is pushing for a registration exemption regulation of up to $75 million, and the CFTC has submitted a five-category asset classification system to the White House.

-Holders of major virtual assets, including Bitcoin and XRP, are paying attention to the market impact resulting from securing regulatory clarity.

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