The United States lacks a durable congressional framework for digital asset regulation, leaving the sector dependent on federal agency rules that may not survive political transitions, according to recent analysis.
The CLARITY Act, which would have established a national framework for digital assets and clarified the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), passed the House in 2025 but stalled in the Senate in September. Congress has not sent a bill to the president.
In the absence of congressional action, both the SEC and CFTC have implemented new regulations to govern crypto trading platforms and certain digital assets. However, these rules rely on existing agency authority rather than new legislation, making them vulnerable to reversal through congressional action or changing administrations.
The regulatory challenge
The primary concern is that agency-adopted rules lack the political durability of laws enacted by Congress. Agency regulations can be challenged, defunded, or repealed through Congressional Review Act procedures if political control shifts.
Historical precedent demonstrates how legislative shifts can constrain agency authority. When Congress changes hands, new majorities can use oversight, funding restrictions, and legislative action to challenge or reverse prior regulatory approaches.
International context
Other jurisdictions have established clearer regulatory frameworks. Europe's Markets in Crypto Assets (MiCA) regulation and Singapore's Payment Services Act have provided regulatory certainty for digital asset activities in those regions.
Key issues for industry
Businesses and investors face uncertainty about whether current rules will remain stable. Companies must make decisions about whether to build, hire, and invest in the United States based on regulatory predictability—currently unavailable under the present framework.
A permanent congressional solution would provide clarity on what activities are legal, which agencies have jurisdiction, and how rules will be enforced, removing the election-to-election uncertainty that currently exists.
