The Clarity Act, the most advanced U.S. legislative attempt to delineate SEC versus CFTC jurisdiction over digital assets, has failed after months of bipartisan drafting. The breakdown reportedly stemmed from unresolved disputes over which assets qualify as commodities versus securities, a division that stalled floor scheduling. Without enactment, no statutory safe harbor exists for digital asset spot markets or lending arrangements.
For Armada's crypto-repo desk, the collapse means BTC, ETH, SOL, and HYPE collateral remain in regulatory limbo under existing securities law interpretations. Counterparty onboarding documents and collateral eligibility policies that anticipated Clarity Act passage may need revision. Legal counsel should reassess whether any pending counterparty agreements contain regulatory-trigger clauses.