Senate Democrats blocked the Digital Asset Market Structure Clarity Act, which would have established a definitive CFTC-versus-SEC jurisdictional framework for digital assets and provided a safe harbor for certain token distributions. The bill's failure leaves the existing enforcement-driven regime intact, with the SEC retaining broad discretion to classify tokens as securities on a case-by-case basis.
For Armada's crypto repo desk, the absence of Clarity Act protections means that SOL, HYPE, and other non-BTC/ETH collateral assets remain in a legally ambiguous category. Any SEC action reclassifying a collateral token as an unregistered security could impair its use and forced Armada to liquidate positions rapidly. Legal counsel should revisit collateral eligibility criteria and ensure haircuts on non-BTC assets reflect this residual regulatory risk.