CFTC and SEC Double Down on Crypto After Clarity Act Defeat
CFTC Chair Michael Selig and SEC Chair Paul Atkins said their agencies will move ahead with crypto rulemaking using existing authorities after the Senate failed to advance the Clarity Act. Selig said the CFTC is "ready to ship" rules for crypto markets, and Atkins pledged the SEC would act "with or without legislation."
Why It Matters
The Clarity Act would have created a clearer federal framework and divided responsibilities between the CFTC and SEC; with the bill stalled, regulators’ unilateral actions could determine how U.S. crypto markets are governed in the near term.
Key Facts
- CFTC chair statement: Michael (Mike) Selig said the CFTC is "locked in and ready to ship its rules for the new frontier of finance."
- SEC chair statement: Paul Atkins said the SEC will act "with or without legislation" within its statutory authority and asked readers to "stay tuned."
- Senate vote result: A procedural motion to advance the Clarity Act failed on a 49–50 vote, short of the 60 votes needed to proceed.
- Purpose of the Clarity Act: The bill sought to establish a federal framework for crypto markets and clarify responsibilities between the CFTC and SEC.
- CFTC rulemaking directions: In August Selig directed staff to explore rules for crypto exchanges, trading with borrowed funds, and ways for blockchain-based finance protocols to operate legally in the U.S.
The leaders of the Commodity Futures Trading Commission and Securities and Exchange Commission said they will press forward with crypto regulation after the Senate failed to advance the Clarity Act. CFTC Chair Michael Selig said the commission is prepared to finalize rules for digital-asset markets, while SEC Chair Paul Atkins vowed the agency will act decisively under existing law to provide investors and entrepreneurs with greater certainty.
A procedural vote to move the Clarity Act forward fell 49–50, below the 60-vote threshold needed in the Senate. The legislation aimed to create a federal framework for crypto markets and to spell out which functions would fall to the CFTC versus the SEC. Senate leaders could try again, but the excerpt notes lawmakers’ limited legislative calendar makes another attempt this year unlikely.
Selig has already instructed CFTC staff to craft rules targeting crypto exchanges and activity involving borrowed funds, and to collaborate with developers on how blockchain-based finance protocols might operate legally in the United States. He said the agency intends to help the Trump administration deliver a regulatory framework using its existing statutory authorities, though he previously expressed a preference for legislative solutions because laws are harder for future administrations to reverse.
Atkins had signaled earlier that the SEC would step in if Congress did not act; the agency issued proposed rules in mid-August under a framework called "Regulation Crypto Assets." Both chairs also acknowledged the work put into the Clarity Act: the Senate debate included disputes over ethics restrictions, protections for developers and stablecoin reward rules, and Republicans said they had incorporated 126 substantive changes sought by Democrats during negotiations.
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