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Policy and Re
2026-09-19 17:01:03

Clarity Act setback shifts crypto rulemaking momentum to the SEC and CFTC

A failed Senate vote on the Clarity Act has pushed the center of gravity in U.S. crypto policy away from Congress and toward federal regulators. The market structure bill, widely seen as a landmark effort for the industry, fell short in a procedural vote after more than a year of bipartisan negotiations, with the final tally ending at 49-50, far below the 60 votes needed to advance. Democrats voted as a bloc against moving the bill forward, while Republican Senators Susan Collins, Josh Hawley, and Jerry Moran also opposed it. Senator Thom Tillis first voted yes, then switched to no in a move that preserved the option of revisiting the bill later. The collapse came after last-minute negotiations continued up to the start of the vote. Both parties then traded blame over why the talks broke down. Even so, several Democrats involved in the negotiations said the bill is not dead and described the vote as a setback rather than an endpoint. At the same time, industry attention is already moving toward regulators. SEC Chair Paul Atkins linked the agency’s new innovation exemption to the Senate’s failure to advance the bill, while the CFTC has issued a no-action position for passive software providers and sent a broader crypto market rulemaking proposal to the White House for review. For now, crypto policy clarity in Washington appears more likely to come from regulators than from Congress.

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Clarity Act setback shifts crypto rulemaking momentum to the SEC and CFTC
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