The cryptocurrency industry is progressing toward mainstream financial infrastructure despite the CLARITY Act's failure to advance in the Senate on September 15th. U.S. regulators have begun using existing authority to address key areas of crypto policy.
The SEC has provided a pathway for certain tokenized stocks to trade on blockchain-based platforms, while the CFTC has offered relief to some software developers. U.S. regulators are also considering frameworks for crypto exchanges, leveraged trading, stablecoins, and blockchain-based recordkeeping. The Fed's proposed GENIUS Act rules would establish requirements for stablecoin reserves and risk management.
Traditional financial assets such as stocks, funds, and Treasury-backed products are increasingly being represented and traded on blockchains. According to SEC Commissioner Hester Peirce, these agencies have been using their existing authority to address cryptocurrency regulation for nearly two years.
However, regulatory exemptions and guidance can be changed or withdrawn in the future, according to SEC Chair Paul Atkins. While the industry may have addressed immediate regulatory gaps, long-term certainty will still require legislation.
Many industry leaders, including Circle CEO Jeremy Allaire and Michael Saylor, have argued that the CLARITY Act's failure does not halt crypto's broader progress. Coinbase CEO Brian Armstrong has suggested that crypto policy could become an important issue for voters in upcoming U.S. midterm elections, arguing that cryptocurrency development should not be viewed solely as a partisan issue but as a question of whether the next generation of financial technology gets built in America.
Some lawmakers, including Senator Cynthia Lummis, have expressed frustration over the delay. With midterm elections approaching, uncertainty remains about future legislative action on crypto policy.
