TLDR
- The US Senate voted 49-50 against the CLARITY Act on Tuesday, failing to reach the 60 votes needed
- SEC Chair Paul Atkins vowed to act “decisively” using existing authority, with or without legislation
- CFTC Chair Mike Selig said his agency is “locked in and ready to ship its rules”
- Bernstein analysts expect “aggressive and swift” rulemaking from both agencies
- JPMorgan noted agency rules are less durable than legislation as they can be changed or challenged in court
The US Senate voted 49-50 against advancing the Digital Asset Market Clarity Act on Tuesday, falling well short of the 60 votes needed. The bill would have created the first federal regulatory framework for digital assets.
LATEST: 🇺🇸 Bernstein expects the SEC and CFTC to pursue “aggressive and swift” crypto rulemaking after the CLARITY Act failed its Senate cloture vote. pic.twitter.com/1bDbBGfliV
— CoinMarketCap (@CoinMarketCap) September 17, 2026
Following the vote, both the SEC and CFTC said they will move ahead using their existing authority.
SEC Chair Paul Atkins said the agency will “act decisively within the SEC’s statutory authority to deliver certainty for American investors.” CFTC Chair Mike Selig said his agency is “locked in and ready to ship its rules for the new frontier of finance.”
Coinbase CEO Brian Armstrong summed it up simply on X: “The CFTC and SEC are stepping up. Go time.”
Why the CLARITY Act Failed
Democrats largely opposed the bill over concerns about President Trump’s personal crypto interests and ethics provisions in the legislation. Republicans rejected a Democratic counteroffer, leaving no clear path to a deal.
One Republican Senate aide told The Block the bill is likely dead. Senator Thom Tillis was among those who still believe it could move forward, but analysts at Bernstein called a re-vote unlikely given the limited time window before the November elections.
Bernstein said the failure removes what they described as a “fool-proof” shield for the industry against future political shifts.
What Rules Are Coming
Bernstein analysts published a note Wednesday outlining what they expect from the agencies. The list includes token taxonomy rules for raising capital, developer protections for decentralized finance and self-custodial protocols, and innovation exemptions for equity tokenization.
They also expect faster approval times for real-world asset perpetual futures and amendments to rules around federal sports event contracts.
The SEC had already taken a step in this direction on Aug. 19, proposing new rules for a “clear and fit-for-purpose framework” for crypto investment contracts.
Those proposed rules would allow companies to issue up to $5 million in tokens over four years, or up to $75 million over 12 months. A safe harbor provision would exempt certain cryptocurrencies from being classified as investment contracts.
Atkins had signaled this move was coming. Back on July 27, he told CNBC the SEC was “ready, willing, and able to come out with rules” if the Senate failed to pass the CLARITY Act.
JPMorgan analysts agreed that both agencies are likely to act quickly, but cautioned that rules written by agencies carry more risk than legislation. Future administrations could reverse them, and they can be challenged in court.
The regulatory path for crypto in the US now shifts from Congress to the federal agencies, at least for now.
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