CLARITY Act failure may speed SEC-CFTC rulemaking, Bernstein says

Project Crypto began as an SEC-led effort under Chairman Paul Atkins and expanded to include the CFTC by early 2026, a Bernstein note said. The initiative tackles token classification and possible exemptions for digital asset transactions. Without a legislative framework to defer to, the agencies face pressure to define categories on their own, the analysts said.

Bernstein expects the absence of a law to generate short-term volatility in digital asset markets. The analysts said longer-term clarity from agency rules could lift institutional confidence. Agency rulemaking without statutory backing could be reversed by a future administration, they added.

The crypto industry's push for legislation has stalled. The CLARITY Act delay risks US crypto lead, Haridopolos warns as the Senate lacks a clear path to a vote. Bernstein's view suggests the next regulatory moves will come from the agencies, not Congress.