SEC and CFTC issue new crypto rules amid legislative uncertainty

Following the failed CLARITY cloture vote in the Senate, the SEC unveiled a five-year exemption permitting stock token issuance and trading, while the CFTC exempted some crypto software providers from registration requirements. The SEC also clarified that token buybacks and liquid staking tokens are not securities and proposed new custody rules. However, TD Cowen cautioned that agency rules are easily rescinded, and a 2024 Supreme Court decision allows for easier judicial overturning of agency rules, with a community bank group currently suing the OCC over crypto charters.