Earlier this month, as it became clear that the Digital Asset Market Clarity Act would not receive a vote prior to the Senate’s August recess, industry participants suggested that if Congress didn’t act, regulators could. It wouldn’t be exactly the same; regulators’ actions could be challenged in court and will be easier to undo by a subsequent administration than legislation would be, but the argument is that entrenched regulations would be difficult to undo.

Breaking it down

That argument above presupposes that the SEC and CFTC are actually able to finalize proposed rules in time for them to kick around for a bit prior to a future SEC changing its mind.

But that isn’t guaranteed. The SEC announced late Thursday it was canceling its…