U.S. SEC, CFTC accelerate crypto rulemaking despite congressional recess

The U.S. SEC and the U.S. CFTC are accelerating their own rulemaking for the crypto market while the fate of the CLARITY Act remains uncertain during Congress’s summer recess, Decrypt reported. The two agencies launched a joint public comment process in June on swaps, security-based swaps, the definition of emerging products and the scope of each agency’s jurisdiction. In a comment letter recently submitted to the SEC in response to that joint request, former CFTC Chairman Chris Giancarlo and former SEC Commissioner Steven Wallman warned that setting the wrong regulatory standards for swaps, security-based swaps and emerging products could drive profitable markets overseas. Separately, the SEC recently asked the White House Office of Information and Regulatory Affairs to review a proposed revision to asset custody rules for investment advisers and investment companies. The proposal is expected to establish a regulatory framework for how SEC-regulated investment advisers and investment companies can hold digital assets such as cryptocurrencies while complying with federal securities laws, though the specific provisions have not yet been disclosed.