The CLARITY Act, intended to establish a unified legal framework for digital assets, failed to advance in the Senate on September 15, falling short by 11 votes with a final tally of 49 to 50. This setback leaves the cryptocurrency sector waiting for comprehensive federal legislation on digital asset oversight.
Regulators Move Forward Without Congress
Despite the stalled legislation, Chris Perkins, head of Franklin Crypto, maintains that the market already has sufficient regulatory clarity. On the September 21 episode of the Unchained podcast Bits + Bips, which Perkins co-hosts with Austin Campbell and Ram Ahluwalia, he stated that the current situation is advantageous for institutional players. Perkins explained that the recent actions by federal agencies offer a clear path forward, even without new laws.
Just two days after the Senate vote, the Securities and Exchange Commission introduced a five-year innovation exemption that permits venues to trade tokenized U.S. stocks on public blockchains without requiring them to register as national securities exchanges. The Commodity Futures Trading Commission, under Chairman Michael Selig, indicated plans to draft its own rules for digital assets if Congress does not act, despite the fact that Selig remains the commission’s only member.
Perkins believes these agency decisions have resolved a long-standing issue for the industry: the classification of tokens as either securities or commodities. Previously, uncertainty over taxonomy held back the market, with tokens generating cash flows being classified as securities and consequently restricted. Perkins highlighted, “We didn’t know what was a security and we didn’t know it was a commodity. Now, we’ve got great rules for both.”
The regulators are providing that clarity, Perkins observed, adding that what he called a “regime change” is significant for the entire market. He emphasized that the industry is beginning to trade on fundamentals rather than being viewed as simply a high-risk asset.
Temporary Frameworks and Ongoing Debate
While Perkins sees benefits in the regulatory steps, he also acknowledged these changes do not have the permanence of federal law. The SEC’s exemption is valid for five years and comes with a request for public comment. Similarly, the CFTC’s recent crypto guidance is explicitly stated as non-binding and may be subject to revision.
There is still the possibility of legislative progress. Within days of the failed Senate vote, seven Senate Democrats restarted discussions around the market-structure bill, leaving the door open for future action. This ongoing uncertainty raises questions about whether temporary regulatory clarity can provide the long-term stability that institutions desire.
Perkins expressed confidence in the capabilities of current regulators. With courts backing away from the Chevron doctrine, he noted that agency expertise plays a critical role. Referring to Chairman Selig’s qualifications, Perkins described him as “a very strong attorney.” Although Perkins conceded that establishing clear statutory rules would be preferable, he remains optimistic about the way forward, stating, “We march on.”
Enshrinement would’ve been great. Federal preemption would’ve been great. But we march on, Perkins remarked during the podcast, highlighting his acceptance of the current regulatory path.
Meme Token Market and Technical Monitoring
As digital asset regulation remains in flux, market participants increasingly focus on technical analysis and investor behavior to spot opportunities, especially in rapidly-evolving areas such as meme tokens. In this segment, monitoring investor sentiment and market trends can be as vital as keeping track of price levels or regulatory changes.
An example of this emerged recently: Fomo App reported that a trade involving “Niu Lai” realized a return from just $99 to about $370,000, driven by viral internet trends. This case underscores the importance of tracking not only price action but also the specific timing and token picks favored by investors. Fomo App integrates token discovery and trading, offering features like social feeds, investor rankings, and real-time trade notifications, allowing users to follow both market and community activity within the meme token space.
