U.S. regulators are moving to build a crypto rulebook on their own after the Clarity Act stalled in the Senate. The SEC and CFTC have already taken steps under their existing authority, while state attorneys general push back and Congress's next shot at the bill hinges on the midterm elections.
The Securities and Exchange Commission and the Commodity Futures Trading Commission began expanding their crypto rulebooks just two days after the Clarity Act failed to advance in a Senate procedural vote, moving to regulate the industry under existing authority rather than wait on Congress. The SEC issued an order creating a temporary pathway for trading certain tokenized stocks, a step toward round-the-clock trading. The same day, the CFTC submitted a crypto rulemaking proposal to the White House for review.
Agencies fill the void
White House crypto adviser Patrick Witt said the setback in the Senate hasn't slowed the agencies down. According to CoinDesk: "There's no time to waste now," Witt said, pointing to the SEC and CFTC's recent moves. He acknowledged the new rules could face legal challenges without a law behind them, but said the administration will use the authorities it already has.
Treasury's Luke Pettit said congressional focus has shifted to the agencies, though the bill isn't dead. Both officials suggested its chances of returning during the post-election lame duck session likely depend on how the midterms turn out.
States push back on the bill
A bipartisan coalition of state attorneys general urged the Senate Banking Committee to oppose the Clarity Act in a Sept. 14 letter, arguing it would strip states of their power to police securities markets and prosecute scams. Senate Banking Chairman Tim Scott has separately pressed federal agencies to set guidelines for digital assets until Congress passes a law. Sen. Thom Tillis, who voted against the bill, flipped his vote to preserve the option of asking the Senate to reconsider the legislation.
GENIUS Act rules stay on schedule
Separate from the stalled market-structure bill, regulators are still implementing last year's GENIUS Act, the law governing stablecoins. Treasury's Pettit said banking agencies are on track to meet the law's upcoming deadlines. Witt noted that some companies are already marketing stablecoins as compliant with rules that haven't been finalized yet.
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