The crypto industry is turning to US financial regulators after the Senate failed to advance the CLARITY Act on Tuesday. The motion to invoke cloture fell short with a 49-50 vote, failing to reach the 60 votes needed to advance the bill, which would establish a regulatory framework for digital assets.
Industry executives characterized the outcome as disappointing but expressed focus on potential rulemaking from the US Securities and Exchange Commission and the Commodity Futures Trading Commission as paths forward.
"There is still reason for optimism for crypto in the United States," said Ripple CEO Brad Garlinghouse. "Now, the SEC, under Chair Atkins, and the CFTC, under Chair Selig, will continue to work hard to issue rules to fill the legislative gap and we will continue to be actively engaged in that rulemaking process."
At the Solana Policy Institute Summit on Monday, SEC Chair Paul Atkins committed to delivering clearer crypto rules regardless of legislative support. However, some industry leaders worry that relying solely on agency guidance presents risks.
"Rejecting the bill leaves firms completely dependent on agency guidance and ongoing administrative discretion," said NEAR chief legal officer Abhishek Vaidyanathan. He warned that firms planning budgets for 2027 would face prolonged delays and continued legal uncertainty.
Bitget Wallet chief operating officer Alvin Kan noted that the bill's failure perpetuates "continued uncertainty over how securities, commodities and money-transmission rules apply across different products."
Another Vote Possible
Senator Thom Tillis moved to reconsider the failed cloture vote, potentially setting up another attempt to advance the legislation. Industry observers remain divided on whether Congress can pass the bill before the current term ends in January.
"Today's result is a delay, not a verdict," said 1inch chief legal officer Orest Gavryliak. "Legislation of this scale rarely moves in a straight line, and a cloture vote can be brought again."
Vaidyanathan expressed less optimism about immediate prospects, suggesting the next Congress would likely be the next opportunity to address crypto market structure. The House has canceled its work weeks of September 21 and 28, and the Senate's state work period begins October 5 ahead of the November 3 election.
Polymarket odds of the CLARITY Act being signed into law in 2026 fell to 5% on Tuesday, marking the lowest probability since the market opened in January.
