The Bottom Line

• The Digital Asset Market Clarity Act would trigger a major regulatory overhaul.
• The Securities and Exchange Commission would bear the heaviest burden and play the central role in how crypto assets are regulated.
• Companies that engage in the rulemaking process early will have the best opportunity to influence the final regulations.

The passage of the Digital Asset Market Clarity Act (currently pending in the Senate) would launch one of the most ambitious notice-and-comment rulemaking programs since Dodd-Frank — more than 40 mandates spanning five agencies with deadlines clustering between 270 and 360 days after enactment. Section 905 would require each regulator to adopt rules within one year — a sprint requiring…