The crypto industry is claiming regulatory victories in Washington despite the failure of the Clarity Act, a proposed bill that would have established federal market rules for digital assets, according to Kristin Smith, president of the Solana Policy Institute.
Smith told Bloomberg that the industry has secured wins including passage of the Genius Act, the U.S. stablecoin law, and a change to an Internal Revenue Service broker rule. She noted that the legislative fight gave regulators political cover to pursue rulemaking.
Regulatory Timeline and Durability
Smith emphasized that the timing of regulatory action matters significantly. Rulemaking at the Securities and Exchange Commission and the Commodity Futures Trading Commission typically takes 18 to 24 months, she said. Rules completed before the Congressional Review Act window closes—around summer 2028—would be difficult to reverse, she argued.
The Congressional Review Act allows Congress to overturn recent agency rules. Smith believes that rules finished before this deadline would prove more durable than newly enacted legislation.
The CFTC opened public comment Monday on leveraged retail crypto trading rules.
Remaining Obstacles
Smith identified potential barriers to further legislative progress, including the president's family crypto business and incomplete support from traditional financial institutions. She deemed a revival of the Clarity Act before November midterms or in a lame-duck session unlikely but possible.
However, Matt Hougan, Chief Investment Officer at Bitwise, offered a contrasting view. He conceded that crypto's regulatory gains depend on agency action and could be reversed by a new administration starting in January 2029.
That leaves the industry's regulatory future dependent on two federal agencies operating under a timeline of less than two years.
