SEC and CFTC say they will push crypto rules after Clarity Act fails in Senate
Two US agencies say they will act without Congress
The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission say they will move ahead with crypto rulemaking using the powers they already hold, after the Senate did not advance the Clarity Act.
The Senate voted 49-50 against the Clarity Act on Tuesday. The bill needed 60 votes to move forward. It would have regulated the digital asset industry across the country at the federal level for the first time.
With the bill stalled, the center of U.S. crypto regulation may shift from Congress to the two agencies.
Key points
- The Senate voted 49-50 against the Clarity Act; 60 votes were needed to move it forward.
- SEC Chairman Paul Atkin said the agency will act “with or without legislation” using its existing statutory authority.
- CFTC Chair Mike Selig said his agency is “locked in and ready to ship its rules for the new frontier of finance.”
- Analysts at Bernstein and JPMorgan expect fast agency rulemaking, though JPMorgan noted such rules are easier to change later.
What the SEC and CFTC chairs said
Atkin posted on X on Wednesday that “our collective conviction that America must continue to lead is indispensable.” He said he has been “unequivocal: with or without legislation, we will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future.” He closed with “Stay tuned.” Statutory authority means the power an agency already has under existing law.
Selig said the result of the Senate vote was “unfortunate” and that American investors deserve regulatory clarity, legal certainty and consumer protections in crypto asset markets. He said President Trump promised to deliver a future-proof crypto asset regulatory market structure “one way or another,” and that the CFTC will help get that done using its existing statutory authorities.
Where the Senate stands
One Republican Senate aide told The Block’s Sarah Wynn that they think the bill is dead. Sen. Thom Tillis, however, thinks there is still life for Clarity.
Democrats largely opposed the bill over concerns about President Donald Trump’s crypto interests and ethics provisions. Republicans rejected a Democratic counteroffer, leaving the legislation’s path forward uncertain as the November elections approach.
What analysts and industry figures expect
Bernstein analysts expect the two agencies to take an “aggressive and swift” approach to crypto rulemaking. JPMorgan analysts said something similar, but noted that agency rules are less durable than a law because future administrations could change them and they could be challenged in court.
Coinbase CEO Brian Armstrong wrote on X on Wednesday: “The CFTC and SEC are stepping up. Go time.”
What is confirmed
- The Senate voted 49-50 against the Clarity Act on Tuesday, short of the 60 votes needed.
- The SEC chair and the CFTC chair made their statements on Wednesday, saying their agencies will use existing authority.
- Republicans rejected a Democratic counteroffer on the bill.
What is still unclear
Whether the Clarity Act can be revived is not settled. A Republican Senate aide said the bill is dead, while Sen. Tillis said it may still have a path. The sources do not say which specific rules the SEC or CFTC plan to publish, or when they would take effect.
Why this matters
The Clarity Act was intended to set comprehensive federal rules for digital assets for the first time, covering a market worth watching for both companies and investors. With that bill stalled, those rules may instead come from two agencies. JPMorgan analysts warn that agency-written rules are less durable: a later administration could rewrite them, and courts could strike them down.