US Crypto Regulation Seen Driven By Agencies As 1inch
Crypto executives expect US federal agencies to drive digital-asset policymaking regardless of the outcome of ongoing midterm elections.
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As voting takes place across the United States during the midterm elections, industry leaders are looking at how legislative uncertainty impacts the digital-asset sector. While control of Congress remains undecided and the path for the stalled market structure legislation hangs in the balance, a legal expert has noted that substantial developments will likely stem from federal watchdogs rather than lawmakers. Maylea Ma, deputy general counsel at decentralised protocol 1inch, pointed out that meaningful movement in digital-asset oversight over the coming years is expected to come from the US Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Treasury.
While Ma observed that these regulatory bodies are increasing their interactions with blockchain projects, she cautioned that such engagement does not deliver the stability the sector sought through formal legislation. The ultimate objective remains establishing a permanent statute that cannot be abruptly overturned whenever political administrations shift. This regulatory ambiguity heavily concerns institutional investors who are monitoring the market closely.
1inch Legal Perspective On Federal Policy
According to Michael Ho, co-founder of D3 and part of the team behind Doma Protocol, the reliance on agency guidance leaves digital-asset policy vulnerable to future reversals, which causes major capital holders to hold back. Ho stated that clear rules codified into law are essential to attract institutional funds toward tokenized real-world assets. The ongoing debate highlights the heavy reliance on administrative directives while lawmakers struggle to advance comprehensive bills.
Recent months have seen multiple actions from watchdogs. In August, the SEC introduced a framework for digital-asset fundraising that featured exemptions for specific token offerings along with safe harbor provisions protecting certain assets from being classified as investment contracts. Additionally, the commission updated staff guidance covering token buybacks, blockchain networks, and staking receipt tokens in September. Meanwhile, the CFTC submitted its own digital-asset regulatory proposal for review by the White House on September 17, which occurred just two days after the Senate failed to advance the CLARITY Act.
Federal agencies are expected to steer digital-asset policymaking regardless of congressional election outcomes.
Why it matters
Crypto executives anticipate that federal bodies will continue directing the policymaking landscape regardless of congressional election results. This ongoing reliance on agency guidance rather than permanent legislation creates policy uncertainty, keeping major institutional capital sidelined while waiting for codified rules.