CertiK: U.S. stablecoin and custody laws create clearer framework, boost institutional crypto access
Blockchain security firm CertiK published a U.S. Digital Asset Policy Report assessing recent U.S. legislative and market-structure changes that affect stablecoins, asset classification and institutional custody. Key developments reviewed include the GENIUS Act (federal licensing and strict reserve/redemption rules for payment stablecoins), the CLARITY Act (clarifies SEC vs. CFTC jurisdiction and expands CFTC oversight of digital commodities) and the rescission of SEC Staff Accounting Bulletin 121 (removing capital constraints for banks offering crypto custody). CertiK says these changes provide the clearest federal framework yet for stablecoin issuance, asset classification and custody, while noting a remaining “preemption gap” from fragmented state licensing. The report also highlights market-structure moves enabling CFTC-registered exchanges to list spot crypto products and institutional pilots (e.g., Regulated Liability Network, Project Guardian) exploring permissioned settlement. CertiK warns that liquidity will likely fragment by jurisdiction (U.S. vs. EU/MiCA), making cross-jurisdictional compliance and infrastructure a competitive advantage. The analysis is aimed at financial institutions, digital asset providers and policymakers preparing for operational and regulatory demands ahead.
Bullish
The news is categorised as bullish because clearer federal rules for stablecoins and custody reduce regulatory uncertainty, a key barrier to institutional participation. The GENIUS Act’s federal licensing and reserve rules lower legal risk for stablecoin issuance; the CLARITY Act’s jurisdictional delineation reduces security-vs-commodity ambiguity that has hindered product listings; and rescinding SAB 121 removes capital constraints for banks to offer custody. Collectively, these measures widen institutional on-ramps, likely increasing custody flows, stablecoin issuance and trading volumes. Short-term effects: modest positive price reaction for major liquid tokens and stablecoin-related pairs as trading access and product listings expand (and as CFTC-registered venues list spot products). Expect increased volatility around implementation milestones and exchange listings. Long-term effects: improved market depth and institutional liquidity, narrower spreads, and greater adoption of regulated settlement rails — supportive of higher market capitalization and product innovation. Caveats: state-level licensing fragmentation could limit multi-state operations and segment liquidity regionally (U.S. vs. EU/MiCA), creating arbitrage and compliance-driven flow shifts. Historical parallels: announcements clarifying custody rules (e.g., past regulatory guidance that enabled ETF launches) tended to boost institutional inflows and market confidence. Traders should monitor implementation timelines, CFTC/SEC rulemaking outcomes, spot listings on CFTC venues, and stablecoin issuance announcements for actionable signals.