SEC Drops 'Reg Crypto' Rulemaking: Do We Still Need Clarity?

Summary

The Policy Protocol discusses the SEC's proposed Reg Crypto rulemaking, President Trump's Hyperliquid comments, and a court ruling against the CFTC in the Kalshi fight. Guest Alexander Zozos explains that Reg Crypto creates fundraising exemptions and a safe harbor to solve crypto's securities-law 'Hotel California' problem. Hosts debate whether the rule is a durable foundation or a vulnerable window and highlight remaining gaps that may require CLARITY Act legislation.

• President Trump mentioned bringing Hyperliquid onshore, but host Renato Mariotti is skeptical current CFTC rules allow it.
• Rebecca Rettig sees possible CFTC modifications to accommodate crypto perpetuals.
• A Connecticut court ruling slammed the CFTC's Kalshi emergency order and cited Loper Bright, setting up a potential Supreme Court prediction-market fight.
• Alexander Zozos explains Reg Crypto's two fundraising exemptions and safe harbor for tokens.
• The rule aims to solve the 'Hotel California' problem of tokens checking into securities law but never checking out.
• Hosts view Reg Crypto as a window vulnerable to APA litigation without legislation.
• Crypto lawyers are named Person of the Week for contributing to the rulemaking.