The SEC and CFTC are signaling plans to continue developing cryptocurrency rules using their existing legal authority after the U.S. Senate failed to advance the Clarity Act, potentially shifting the immediate focus of U.S. crypto regulation from Congress toward federal agencies.
The Senate rejected cloture on the motion to proceed with the legislation on September 15 in a 49-50 vote, leaving it short of the 60 votes required to advance. The procedural defeat does not permanently prevent reconsideration, but it represents a significant setback for the legislation.
The Clarity Act seeks to establish a comprehensive federal market structure for digital assets, including clearer divisions of responsibility between the Securities and Exchange Commission and Commodity Futures Trading Commission.
With its path through Congress now uncertain, both regulators are indicating they are prepared to act independently within powers granted under existing law.
SEC Says It Will Move Ahead
SEC Chairman Paul Atkins said Wednesday that the agency would continue pursuing regulatory certainty regardless of what happens to the legislation.
The statement follows regulatory work already underway at the SEC. In March, the agency issued an interpretation addressing how federal securities laws apply to different crypto assets and transactions, joined by the CFTC.
The SEC subsequently proposed Regulation Crypto Assets in August, designed to establish tailored securities offering rules for certain investment contracts involving digital assets.
Atkins has nevertheless maintained that congressional legislation remains important because statutory rules would be more durable than agency actions. In August, he described legislation as “indispensable” to establishing rules less vulnerable to reversal by future regulators.
CFTC Signals Its Own Crypto Rulemaking Push
CFTC Chairman Michael Selig delivered a similar message following the failed Senate vote, saying the agency was prepared to continue developing rules for digital asset markets under its existing statutory authority.
The two regulators have already been coordinating their approaches. Their March interpretation established common guidance around several categories of crypto assets while addressing how securities and commodities laws interact.
Earlier this year, the SEC and CFTC also emphasized plans to harmonize their regulatory frameworks, including definitions, reporting requirements and approaches to crypto trading infrastructure.
The collapse of the Senate vote could now increase the importance of those agency-led initiatives.
Clarity Act Faces Uncertain Future
The legislation's setback followed months of negotiations between Republicans and Democrats over issues including stablecoin rewards, market oversight and ethics provisions involving public officials' crypto interests.
Democrats largely opposed advancing the bill after negotiations failed to resolve outstanding concerns, while several Republicans also voted against cloture. Sen. Thom Tillis changed his vote for procedural reasons, preserving a potential route for reconsideration.
That means the Clarity Act is stalled rather than formally defeated for the remainder of Congress, although lawmakers face a shrinking legislative calendar ahead of the November elections.
The disagreement leaves federal regulators with a larger role in determining how crypto businesses operate while Congress considers whether another legislative attempt is possible.
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