The CLARITY Act, which sought to draw a definitive legislative line between securities and commodities for digital assets, failed to pass Congress. Despite this, both the SEC and CFTC have proceeded with rulemaking and enforcement actions that are functionally shaping the regulatory landscape, leaving firms to navigate a patchwork of agency guidance, no-action letters, and court precedent rather than a clean statutory framework.
For Armada's crypto repo desk, the absence of a statutory definition of which tokens are securities versus commodities creates ongoing collateral eligibility risk. BTC is relatively settled, but ETH, SOL, and HYPE remain in contested territory. Counterparty onboarding, margin agreements, and any future FICC-adjacent clearing integrations will need to account for this ambiguity explicitly.