On August 14, former SEC employee Anne Kelley posted on the X platform that the U.S. Constitution grants Congress exclusive legislative authority. Congress subsequently delegates some of its powers to federal agencies like the SEC, which are responsible for formulating rules to implement relevant laws. Even if the public meeting on tokenization innovation exemptions by the SEC is held tomorrow, it will only be the first formal step in the proposed rulemaking process and does not mean that the final rules are established. There will still be a public comment period, during which members of Congress often express their opinions, and the entire process typically takes months. The committee can advance rulemaking through various procedures: public meetings, item-by-item reviews, issuing temporary final rules under limited circumstances, or issuing regulatory guidance. However, formal rules with binding authority must still comply with the Administrative Procedure Act (APA). If the CLARITY Act passes during this time, regulators do not need to start from scratch; they can continue to advance the proposal by issuing a Supplemental Notice of Proposed Rulemaking (SNPRM) based on existing work. Even if the CLARITY Act passes smoothly tomorrow, the SEC and the Commodity Futures Trading Commission (CFTC) will still need to draft supporting implementation details, a process that will take at least several months. The GENIUS Act was passed a year ago, and to this day it has not been fully implemented, which is the reason for this delay. There is no one-size-fits-all solution. For rules to be sustainable and withstand judicial review, they must adhere to the Administrative Procedure Act. We should support the compliance process. This matter should not evolve into a confrontation between the SEC and Congress; both should work in collaboration.
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