The Commodity Futures Trading Commission and Securities and Exchange Commission signaled they will move forward with crypto regulation following the Senate's failure to advance the Clarity Act on Tuesday.
The Senate voted 49–50 on a procedural motion to advance the legislation, falling short of the 60 votes required to clear the procedural hurdle. The bill would establish a federal framework for crypto markets and clarify regulatory responsibilities between the two agencies.
CFTC Chair Mike Selig said his Commission is "locked in and ready to ship its rules for the new frontier of finance." He stated the agency would help deliver a crypto regulatory framework "using our existing statutory authorities."
SEC Chair Paul Atkins similarly pledged decisive action, writing on social media: "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."
Selig outlined planned rule development in August, directing staff to explore regulations covering crypto exchanges and trading with borrowed funds. He also tasked staff with working with developers on ways for blockchain-based finance protocols to operate legally in the U.S.
The SEC released proposed rules under a framework called "Regulation Crypto Assets" in mid-August.
The failed Senate vote came after disagreements over ethics restrictions, developer protections, and stablecoin rewards. Republicans said they had incorporated 126 substantive changes requested by Democrats, who sought further restrictions on public officials' crypto interests and changes to other provisions.
Senate leaders could bring the Clarity Act back for another vote, though chances of advancement this year are described as slim given the remaining legislative calendar.
