SEC and CFTC plans to write crypto rules without Congress – but they can’t make them permanent

What Happened

CFTC Chair Michael Selig announced on August 4 that the commission already has crypto rulemaking proposals ready and plans to finalize them before the current administration ends, regardless of whether Congress passes the CLARITY Act. This indicates that regulators will not wait for legislative action to implement new standards in the crypto sector.

SEC Commissioner Hester Peirce separately stated that the SEC can continue pursuing meaningful crypto rulemaking even if Congress fails to act. In this way, the two most important U.S. financial regulators are demonstrating their readiness to act independently amid legislative gridlock.

Why This Matters

This move signals the intention of American regulators to exercise more active control over the crypto market. However, it's crucial to understand the limitations of this approach: rules issued by agencies without Congressional involvement can be overturned or revised by the next administration. This creates uncertainty for businesses and investors.

For the crypto industry, this means temporary rather than permanent rules of engagement. Without a legislative foundation, crypto companies and users will remain in a situation with limited regulatory predictability, which directly impacts long-term investment decisions.

What This Means for You

If you invest in crypto or use crypto platforms, it's worth monitoring developments in the United States. New rules may change service conditions or taxation. When choosing a platform, pay attention to how it responds to new regulations — this demonstrates readiness for change. Most importantly: don't put all your eggs in one basket and diversify your risks across multiple crypto platforms.

CryptoNavigator Take:

Here's what beginners need to know: regulatory news is not a buy or sell signal, but information about changing rules. When American regulators develop new standards, it can actually be a positive sign for crypto market legalization. However, remember that self-liquidating rules are less valuable than legislatively established ones. CryptoNavigator — an educational platform for those taking their first steps in the world of cryptocurrencies.

Sources:

https://cryptoslate.com/