CFTC Chairman Michael Selig said the Commodity Futures Trading Commission will pursue crypto rules under its existing statutory authority, hours after the Senate failed to advance the CLARITY Act on Tuesday.

The Senate voted 49-50 against advancing the bill during Tuesday's session on crypto regulation in Washington, D.C. The measure needed 60 votes to proceed under the Senate's cloture threshold, meaning a simple majority would not have been enough to move it forward. Selig, who described the outcome as unfortunate on Wednesday, said Americans now deserve regulatory clarity, legal certainty, and consumer protections across crypto markets.

Selig Pledges Action Under Existing Authority

In a post on X, Selig said the CFTC remains ready to issue rules for the "new frontier" and noted that President Trump had promised a future-proof regulatory market structure for crypto assets. The agency intends to pursue that goal using its existing statutory authorities.

His statement came hours after the CLARITY Act fell short in the Senate. For market participants, the distinction matters: legislation would fix jurisdictional lines in statute, while rules written under existing authority take shape, and can be revised, through the administrative rulemaking process.

Senate Vote Leaves Legislation Unresolved

The CLARITY Act sought to establish federal rules for digital assets and to define the treatment of commodities and securities. It also could have expanded the CFTC's jurisdiction over spot markets for digital commodities, authority the commission does not currently hold under its existing statutes.

Democrats raised concerns about President Trump's crypto interests and the bill's ethics provisions. Republicans rejected a Democratic counteroffer, and Sen. Thom Tillis said the bill could still advance, while one Republican Senate aide described the legislation as dead. Tillis's assessment keeps the legislative track open even as the agencies move ahead on rulemaking.

Despite the setback, analysts at Bernstein expected swift rulemaking from the SEC and CFTC. JPMorgan analysts also anticipated action from the agencies.

SEC and CFTC Turn to Rulemaking

SEC Chairman Paul Atkin said the SEC would act within its statutory authority with or without legislation, and that the agency would seek certainty for investors and entrepreneurs.

The CFTC's existing framework rests on anti-fraud and anti-manipulation powers over digital commodity markets, authorities the commission has previously used in crypto enforcement actions. That scope means the commission's rulemaking, on its own, cannot deliver the expanded spot-market oversight the bill would have provided.

Selig did not provide a specific timeline for the new framework. Proposed rules would typically face a public comment period before finalization, through CFTC meetings and the Federal Register, a window in which market participants and the public can weigh in before any requirements take effect.

Coinbase CEO Brian Armstrong said, "The CFTC and SEC are stepping up. Go time."