Technology
By Maheen Hernandez
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What the Proposal Does and Doesn't Cover. One thing missing from the draft: the so-called "innovation exemption" for crypto-based stocks.
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Congress, the CFTC, and a Narrow Window. Senate Majority Leader John Thune filed a motion to bring the CLARITY Act back to the floor when…
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What Happens If the CLARITY Act Stalls Again. That's the real risk. The SEC's proposal buys some time.
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The SEC didn't wait for Congress. With lawmakers still on recess and the Digital Asset Market Clarity Act going nowhere fast, the agency dropped a proposal to build its own…
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The proposal lays out what the SEC calls a "clear and fit-for-purpose framework" for investment contracts tied to crypto.
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One thing missing from the draft: the so-called "innovation exemption" for crypto-based stocks. That was something a lot of people in the industry wanted, and it's not there.
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The public gets 60 days to comment once the proposal hits the Federal Register. That's a standard window, but given how loud and organized crypto lobbying has become, expect that…
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And the backdrop here matters. The CLARITY Act — which would have spelled out exactly which federal agencies oversee which parts of the crypto market — didn't make it to a vote…
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Senate Majority Leader John Thune filed a motion to bring the CLARITY Act back to the floor when the Senate reconvenes in mid-September. But the math is rough.
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Related: SECs Regulation Crypto Assets Unveils $75 Million Fundraising Opportunity for Token Issuers
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White House crypto adviser Patrick Witt didn't sugarcoat it. He said U.S. regulators might ramp up crypto enforcement if Congress can't get the CLARITY Act done.
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Meanwhile, the CFTC has a separate meeting planned to dig into the intersection of crypto, artificial intelligence, and prediction markets.
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The industry has sunk serious money into lobbying around this legislation. Crypto PACs and trade groups have been active for the past two election cycles, and the CLARITY Act was…
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That's the real risk. The SEC's proposal buys some time. It gives companies a clearer path to raise capital without immediately triggering enforcement, and it gives investors…
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Related: SEC Charges Tricolor Executives in $1.9 Billion Auto Lending Fraud Scheme
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