Regulatory Push for Crypto Assets: Congressional Inaction, SEC Proposal, and Federal Trading Option

An examination of the current U.S. regulatory landscape for crypto assets, focusing on congressional delays, SEC rulemaking, and the creation of a federal trading option with market-based protections.

■ Congressional Inaction and Regulatory Authority
- Frustration with Congress for not delivering a crypto bill to the President.
- Intention to use existing legal authority, with the SEC taking parallel action.

■ SEC Crypto Framework and Market Protections
- SEC regulatory proposal for crypto asset distribution and Gensler's criticism of certain offerings.
- A path to bring tokens to the U.S. under securities law protection, though most tokens are not securities.
- Post-FTX concerns about state-licensed platforms lacking market-based rules.
- Proposed market-based rules: anti-manipulation, fraud prevention, customer asset segregation, and separation of broker, exchange, and clearing functions.
- A federal trading option versus mandatory exchange registration under the CLARITY Act.

For viewers interested in U.S. crypto regulation, SEC policy, and the balance between innovation and investor protection, this provides an overview of the regulatory rationale and proposed federal option.