The SEC and CFTC say they will push ahead with crypto rulemaking under their existing authority after the Senate blocked the Clarity Act. Both agencies' chairs pledged to act regardless of Congress, while Wall Street analysts expect fast new rules that carry less staying power than legislation.
The Securities and Exchange Commission and Commodity Futures Trading Commission signaled Wednesday that they will move ahead with crypto rulemaking using their existing authority, after the Senate voted 49-50 against the Clarity Act on Tuesday, short of the 60 votes needed to advance the bill.
Regulators pledge to act alone
SEC Chairman Paul Atkins said the agency will act within its statutory authority with or without new legislation, promising more detail soon. According to The Block, CFTC Chair Mike Selig said his agency is "locked in and ready to ship its rules for the new frontier of finance." Selig added that the CFTC would help President Trump deliver a crypto market structure using its existing statutory authorities.
Senate vote splits along familiar lines
Democrats largely opposed the bill over concerns about President Trump's crypto interests and ethics provisions, while Republicans rejected a Democratic counteroffer. One Republican Senate aide said the bill is dead, though Sen. Thom Tillis and others think Clarity still has a chance ahead of the November elections.
The bill aims to formally divide crypto oversight between regulators, distinguishing which digital assets count as securities, commodities or stablecoins. It passed the House last year but stalled for most of this year after the banking lobby clashed with lawmakers and crypto businesses over whether platforms like Coinbase should pay customers yield. Separately, some lawmakers sought to revise the bill's ethics wording, and a new draft began circulating in July that would bar government officials from promoting or profiting from crypto.
Wall Street expects fast action
Bernstein analysts expect the two agencies to move quickly and forcefully on crypto rulemaking. JPMorgan analysts echoed that view but noted agency rules are less durable than legislation, since future administrations could reverse them and courts could challenge them. Coinbase CEO Brian Armstrong welcomed the shift on X, saying the moment for the two agencies to act had arrived.
The SEC last month proposed its own framework for crypto asset offerings, pressing ahead even before the Senate vote failed.
Sources: The Block, Bitcoin Magazine
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