- The CLARITY Act failed to advance in a 49-50 Senate vote, but regulators say crypto policy can still progress.
- SEC Chairman Paul Atkins and CFTC Chairman Michael Selig signalled that their agencies will continue developing crypto rules.
- Michael Saylor expects regulatory action, greater bank involvement in Bitcoin and more investment in digital assets.
- Bernstein analysts expect further agency rulemaking covering crypto fundraising, DeFi, self-custody, tokenised equities and perpetual futures.
As reported, the CLARITY Act was voted down in a 49-50 vote on Tuesday. But this doesn’t mean crypto in the US has no path forward: both the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have said they’re committed to moving the industry forward.
Both chairs made statements on X (formerly Twitter) following the Senate vote.
SEC Chairman Paul Atkins thanked everyone who made an effort to work on the act, “across the Administration, Congress, investors, and innovators”. At the same time, he said that regardless of whether legislation is passed, his agency will continue working to advance US leadership in the crypto industry.
[W]e will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future.
SEC Chairman Paul Atkins CFTC Chairman Michael Selig echoed Atkins’ comments, pledging his support for the industry, legal certainty and consumer protections.
The U.S. is and will remain the crypto capital of the world. The CFTC is locked in and ready to ship its rules for the new frontier of finance.
CFTC Chairman Michael Selig Read also: Crypto Advocacy Group Warns Senators of Midterm Consequences After CLARITY Act Setback
Industry Reacts to Agency Statements
Industry leaders, such as Strategy’s Michael Saylor, have been quick to comment following the Senate vote. On X, Saylor said that crypto regulation and adoption can keep moving forward even without the CLARITY Act.
He expects the CFTC and SEC to develop rules under their current authority, banks to expand Bitcoin-related services, and more investment to flow into Bitcoin and digital credit, while stablecoin legislation could further support adoption.
Bernstein analysts said in a note to investors that they expect “aggressive and swift” rulemaking from both agencies following the bill’s failure. The analysts believe a new vote on CLARITY is unlikely due to unresolved ethics concerns. Several Republicans had expressed their hopes the bill may still pass after “the lame duck session”.
According to Bernstein, the CFTC and SEC will likely pursue clearer crypto fundraising rules, protections for DeFi and self-custody developers, exemptions for tokenised equities, and quicker approval of real-world-asset perpetual futures.
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