US Crypto Regulation Moves to Next Stage: What Has Emerged Beyond the Clarity Act

WASHINGTON, 27 SEPTEMBER 2026 —

US regulators are reshaping the crypto‑asset landscape even as the Senate‑blocked “Clarity Act” stalls, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) moving to codify rules under their existing authority and the newly‑passed stable‑coin legislation entering its implementation phase.

The failure of the Clarity Act to advance in the Senate has redirected attention from legislative reform to rule‑making by the two primary market regulators. Both agencies have intensified outreach to market participants, convening roundtables, issuing requests for comment and gathering empirical data on how crypto assets are traded, how tokens function and what investors expect.

According to the note, “you cannot move the actual market just by debating whether or not to ‘regulate’ crypto assets.” The agencies are therefore seeking to build concrete rules based on observed market realities rather than waiting for comprehensive congressional action.

A central theme in the SEC’s emerging approach is the separation of two analytical strands: the intrinsic nature of a crypto asset and the manner in which it is sold. The note explains that if a network operates with a high degree of decentralisation and minimal reliance on a central entity, the token may be classified differently from a security.

Conversely, if the token’s sale involves promises or marketing that lead purchasers to expect profits from the efforts of the issuer or a central team, the transaction would trigger a distinct securities analysis. This nuanced framework moves beyond a binary “security or not” determination and incorporates factors such as network structure, decentralisation, governance, token functionality, promoter involvement and investor communications.

The SEC’s evolving methodology also extends to newer token models. Staking mechanisms, receipt tokens and yield‑generating stablecoins are each to be evaluated according to their specific economic realities.

The note stresses that tokenising a real‑world security on a blockchain does not automatically strip it of its securities status; “what is being tokenised that is important.” This perspective is intended to guide the nascent tokenisation market, where traditional assets are increasingly issued and settled on distributed ledgers.

Stablecoins have entered a distinct regulatory track. The United States has already passed legislation governing stablecoins, and the note highlights that the focus now is on implementation. Financial institutions and companies are beginning to act on the law, developing the peripheral infrastructure needed for stable‑coin issuance, digital‑asset services, custody, settlement and tokenised assets.

The rollout of this infrastructure is expected to ripple through the broader crypto‑asset market, affecting liquidity, collateral management, settlement processes and risk‑management practices.

Beyond stablecoins, the note points to a larger transformation: the digitisation of the US dollar and other financial assets, and the move toward a 24‑hour, blockchain‑based financial market. Traditional markets close periodically, whereas blockchain markets operate continuously, reshaping concepts of liquidity and settlement.

The note argues that this “on‑chaining of the financial market” could eventually make crypto assets part of the core infrastructure used by banks, payment providers, corporations and everyday users, rather than remaining merely speculative investment vehicles.

The regulatory trajectory is not expected to be linear. While bills may continue to stall in Congress and the SEC and CFTC will need time to finalise rules, the note cautions against judging progress solely on short‑term headlines. It lists a series of interlinked developments – stablecoin implementation, tokenisation, digital‑asset custody, blockchain settlement, rule development by the SEC and CFTC, and the entry of financial institutions – that together point toward a unified direction.

For regional stakeholders, the United States’ regulatory momentum offers both opportunities and challenges. Malaysian fintech firms and regional exchanges that aim to tap US markets will need to align with the emerging SEC and CFTC frameworks, particularly regarding token classification, sale practices and stable‑coin compliance. Likewise, banks and payment providers in Southeast Asia may anticipate a shift in cross‑border settlement models as US‑based blockchain infrastructure matures, potentially accelerating the adoption of 24‑hour settlement services.

The note concludes that the narrative of “regulation stalled” is misleading. While the Clarity Act remains pending, the SEC and CFTC are actively “concretising rules and guidance regarding digital assets while using their existing authority.” Stablecoin legislation has moved into the implementation stage, and the broader agenda of tokenising dollars, securities, funds and other assets is gaining traction.

The decisive factor, the note asserts, will be which blockchains and digital assets become the backbone of this emerging infrastructure.

As the United States builds this regulatory scaffolding, market participants across the region are watching closely to gauge how the new rules will shape the next phase of digital finance. The next steps will involve the finalisation of SEC and CFTC guidance, the operational roll‑out of stable‑coin frameworks by financial institutions, and the practical deployment of tokenised assets on blockchain platforms – developments that could redefine the financial landscape for Malaysia and its neighbours.

Related: SEC