SEC Former Staff: Even If the CLARITY Act Passes, SEC and CFTC Rulemaking Would Still Take at Least Several Months

Odaily News, August 14 - Former SEC staff member Anne Kelley stated that even if the CLARITY Act passes smoothly, the SEC and CFTC would still need to draft accompanying implementation rules, a process that would take at least several months and would not take effect immediately.

Kelley noted that the SEC's upcoming public meeting on tokenization innovation exemptions is only the first step in the proposed rulemaking process, which will still require procedures such as public comment periods. Formally binding rules must comply with the U.S. Administrative Procedure Act (APA) to ensure they can withstand judicial review.

If the CLARITY Act is passed during the rulemaking period, regulators would not need to start over; they could modify existing proposals and continue by issuing a Supplemental Notice of Proposed Rulemaking (SNPRM). Kelley cited the GENIUS Act as an example, noting that although the bill was passed a year ago, it has still not been fully implemented, partly because the accompanying rulemaking takes time.