Former SEC Staffer Says CLARITY Act Would Still Need Months of Rulemaking

Former SEC staffer Anne Kelley said that even if the CLARITY Act is passed, the SEC and the CFTC would still need to draft implementing rules, and the process would take at least several months before taking effect. According to Odaily, Kelley said the SEC's upcoming public meeting on a tokenization innovation exemption is only the first step in the proposed rulemaking process, which would still require a public comment period and other procedures. She said formal rules with binding force must comply with the U.S. Administrative Procedure Act to withstand judicial review.Kelley said that if the CLARITY Act passes during the rulemaking period, regulators would not need to restart the process and could continue by issuing a supplemental notice of proposed rulemaking to revise the existing proposal. She cited the GENIUS Act as an example, saying it passed a year ago but has not yet been fully implemented because drafting the related rules takes time.