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[BUSINESS] · United States · 18 sources

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CLARITY Act fails in U.S. Senate as regulators move to set crypto rules

The CLARITY Act, a major legislative attempt to establish a federal framework for digital assets, failed to advance in the U.S. Senate following a procedural cloture vote on September 15. The motion failed to reach the required 60-vote supermajority, receiving 49 votes in favor and 50 against. The bill's primary goal was to delineate jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding whether digital assets should be classified as securities or commodities.

In response to the legislative stalemate, federal regulators are moving to fill the vacuum. The CFTC has submitted a new set of rules for crypto markets to the White House for review. Simultaneously, the SEC has moved forward with initiatives such as granting a five-year exemption for tokenized stock trading venues.

Coinbase CEO Brian Armstrong has denied allegations that the company or its leadership contributed to the bill's failure, characterizing reports blaming him as being influenced by banking lobbyists. Armstrong noted that while the bill's defeat creates short-term uncertainty, the regulatory actions taken by the SEC and CFTC may offer more permissive environments than the proposed legislation. Meanwhile, Circle CEO Jeremy Allaire suggested the act might still pass in the future, drawing parallels to the successful passage of the GENIUS Act following an initial setback.

Entities

Brian Armstrong · CLARITY Act · Coinbase · Commodity Futures Trading Commission · Securities and Exchange Commission · U.S. Senate · Wall Street Journal

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