The Clarity Act stalled. Bankers aren’t hitting the brakes yet on crypto dealmaking

After all, regulatory uncertainty would make it harder for potential buyers, especially traditional financial firms, less willing to pursue acquisitions in the U.S., particularly when the target's business depends on tokens or activities whose regulatory treatment could change.

But bankers and investors who spoke to CoinDesk don't expect the Clarity Act's setback to slam the brakes on crypto M&A. Instead, they see a more uneven effect: deals in areas where regulators have already provided clearer rules may keep moving, while businesses exposed to unresolved regulatory questions could remain harder to buy.

“The Clarity Act’s setback doesn’t change the trajectory,” said Paul McCaffery, head of digital assets at investment bank KBW.

His argument: Congress isn't the only game in town.

“The SEC and CFTC are already moving proactively to provide the regulatory certainty markets need, and that’s unlocking a wave of M&A across digital assets, traditional financial services, and fintech alike,” McCaffery said.

In fact, just two days after the Senate vote, the SEC approved a temporary “Innovation Exemption” allowing limited trading of tokenized U.S. stocks on certain onchain venues. Then on Oct. 1, the agency proposed a new rule to clarify how investment firms can handle and keep customer crypto assets. Meanwhile, the CFTC has also been removing some regulatory barriers, including providing relief to certain software providers and updating guidance around tokenized investments and blockchain-based recordkeeping.