SEC and CFTC Take the Wheel After CLARITY Vote Failure

The SEC and CFTC Are Ready to Move Without Congress

When the vote failed, a lot of people took to social media to share their approval or frustration over what went down. Coinbase boss Brian Armstrong noted that the failure on Tuesday was a shame. “The CLARITY Act didn’t advance in the Senate today, which was a disappointment,” Armstrong explained to his 3.8 million X followers. “While it’s possible bi-partisan conversations continue, and it lives to fight another day, we can’t wait on Congress anymore.”

It also seems the CFTC and Securities and Exchange Commission (SEC) will move forward on their own and issue crypto rules. SEC Chair Paul Atkins stated:

“I have been unequivocal: with or without legislation, we will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future. Stay tuned.”

CFTC Chairman Mike Selig shared a similar message after saying the outcome was unfortunate. “The CFTC is locked in and ready to ship its rules for the new frontier of finance,” Selig said on the social media platform on Wednesday.

Critics Had Their Own Reasons to Welcome the Failure

Many Democratic leaders disagreed with the people who were upset about the vote failure. The Democratic Senator from Michigan, Elissa Slotkin, detailed that she voted no on the Clarity Act and insisted:

“The ethics provisions in this bill are simply too thin. President Trump, his children, and his Cabinet are making billions of dollars in the crypto space, in part from bilking everyday Americans out of their hard-earned money.”

CEO of the mining firm Braiins, Eli Nagar, shared his point of view. Nagar asked “Why are bitcoiners celebrating the CLARITY Act?” He said the bill fails a basic test: “If I can’t hold my own money, spend it privately, and build useful things without asking for permission, it’s not a win.” Nagar’s concerns include stablecoin restrictions, freezes lasting six months, broader Treasury powers, risks for open-source developers and limited self-custody protections.

His conclusion:

“I vote NO.”

Some Proponents Are Not Writing Off the CLARITY Act Yet

Circle CEO Jeremy Allaire also spoke on the CLARITY Act after the cloture vote failure. “If you remember like the Genius Act, it failed cloture vote too… and then weeks later it passed,” Allaire said during an interview, showing that he is still hopeful the legislation will push through.

To supporters, the CLARITY Act’s latest defeat exposes a deeper truth. Congress is now too slow and too divided to govern crypto, or they just don’t want to. Critics and those who despise regulatory capture are pleased the vote failed on Tuesday, and think the longer the legislation is pushed off, the better.

On the other hand, piecemeal rulemaking by rival regulators creates its own chaos, and the CFTC and SEC taking matters into their own hands could be worse.