Crypto Market May Shrug Off Failure of US Clarity Act

The cryptocurrency market is set to sustain its growth even if the Clarity Act fails to pass Congress.

Chris Perkins, chief executive officer of 250 Digital Asset Management, told Cointelegraph on May 2 that the fallout for the industry would be limited because major US financial regulators are already putting in place a workable framework.

Perkins highlighted policy coordination between Paul Atkins, chairman of the US Securities and Exchange Commission, and Michael Selig, chairman of the Commodity Futures Trading Commission. The two agencies issued a joint interpretation in March setting out how federal securities laws apply to digital assets.

He said regulators are reducing uncertainty in the industry and establishing a system for classifying assets through policy and precedent.

Perkins also said risks tied to digital assets being classified as securities have eased. Under the Biden administration, such a determination often led to immediate enforcement action and delistings.

In the past, a securities designation effectively meant a business shutdown. Now the environment has changed in a way that allows firms to operate within the regulated system.

If the Clarity Act passes, those policies would be codified into law, helping guard against reversals under a future administration, he added.