Unchained DEX in the City: How Regulators Are Preparing for a World Without the Clarity Act
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Mar 12, 2026 Regulators are filling the legislative void with SEC guidance and interagency reviews that could reshape crypto market structure. They debate Chevron deference fallout and which agencies might claim jurisdiction. Banking fights over tokenized securities and Kraken’s narrow Fed access spark competition concerns. Security alarms ring as alleged crypto thefts and foreign cyber threats push firms to harden defenses.
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Chevron Overturning Makes Agency Taxonomies Fragile
- Overturning Chevron removed agency deference, which now complicates relying on agency taxonomies because future courts may not defer to agency interpretations.
- Jessi Brooks warns that cheering Chevron's rollback may have been short-sighted since agencies are better placed to craft technical frameworks for markets.
Agencies Preparing For Legislative Stalemate
- Regulators (SEC, CFTC, Treasury) are shifting to rulemaking and guidance across crypto areas like perps and prediction markets expecting Congress not to act.
- The SEC's jurisdiction covers capital-markets-related on-chain activity, while the CFTC's reach over spot crypto markets is less settled.
Use OMB Review To Strengthen Guidance Defensibility
- Follow interagency processes like OMB/OIRA review because submitting guidance to the White House strengthens procedural defensibility and reduces risk of later procedural attacks.
- Katherine notes OMB review can make guidance harder to challenge, improving enforcement-risk assessment for industry.