SEC and CFTC Will Write Crypto Rules Without Congress, Chairmen Say
Regulators move forward after Senate vote fails
The heads of the SEC and CFTC said Wednesday they will create crypto rules using their existing powers, even though Congress did not pass the CLARITY Act. The Senate rejected the bill Tuesday by a vote of 49-50, falling 11 votes short of the 60 needed to move forward.
CFTC Chairman Michael Selig and SEC Chairman Paul Atkins both posted statements on X within two hours of each other. They said the agencies would act despite the legislative setback.
What the chairmen said
- Selig called the Senate outcome "unfortunate" but said the CFTC is "locked in and ready to ship its rules for the new frontier of finance."
- Atkins said the SEC will "act decisively within the SEC's statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future."
- Both chairmen had warned before the vote that they would use existing powers if the bill stalled.
Regulatory work already underway
The SEC has a proposed rule on crypto asset offerings open for public comment until Oct. 20. The proposal would create exemptions for smaller offerings and a safe harbor to help determine when a crypto asset is not a security.
Atkins also named two other SEC proposals: rules for transfer agents and a custody proposal that would let investment advisers hold crypto themselves instead of using third-party custodians.
The CFTC has not yet proposed a crypto market structure rule. Instead, it has issued staff advisories and no-action letters throughout 2026. Selig said in August he directed staff to explore rules for crypto trading on leveraged or margined basis.
Commissioner vacancies complicate matters
The SEC has three sitting commissioners out of five seats. The CFTC has only one sitting commissioner out of five seats, with four vacancies. Any rules either agency adopts can be challenged or repealed by a future chairman through the same notice-and-comment process.
Markets show little reaction
Bitcoin traded around $75,883, unchanged over 24 hours. XRP fell 3.2% to $1.28. Ether was at $2,403, up 0.5%. Polymarket priced the odds of the CLARITY Act being signed into law in 2026 at 6.6% on Wednesday, down from 19.5% before the Senate vote.
Why this matters for crypto
The regulators' statements show the SEC and CFTC plan to fill the gap left by Congress. Industry groups had pushed for the CLARITY Act to create clear rules, but now companies must navigate agency-by-agency guidance instead of comprehensive legislation.
What happens next
The SEC's crypto offering rule will accept comments until Oct. 20. Both agencies may release additional proposals as they exercise their existing authorities. No timeline was given for CFTC rulemaking.
