CFTC and SEC Pledge to Press Ahead With Crypto Rules After Clarity Act Stalls in Senate
Key Takeaways
- •The Senate's 49–50 procedural vote on Tuesday failed to reach the 60 votes needed to advance the Clarity Act, which would have established a federal framework for crypto markets and clarified CFTC and SEC responsibilities.
- •CFTC Chair Michael Selig said the agency will move forward using existing statutory authorities, following August directives to explore rules on crypto exchanges, leveraged trading, and legal operation of blockchain-based finance protocols.
- •SEC Chair Paul Atkins pledged to act decisively with or without legislation, building on the proposed "Regulation Crypto Assets" rules the SEC released in mid-August after signaling readiness in late July.
- •The bill's failure leaves the division of digital asset oversight between the CFTC and SEC unresolved in statute, and the CFTC chair has previously described agency rulemaking as less durable than legislation.
- •Tuesday's vote followed disputes over ethics restrictions, developer protections, and stablecoin rewards, even after Republicans said they had incorporated 126 substantive changes requested by Democrats.
The chairs of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) said they will press ahead with crypto regulation using their existing statutory powers, after the Senate failed to advance the Clarity Act, a bill that would have established a federal framework for digital asset markets. With the bill stalled, the near-term effort to set crypto rules shifts from Congress to the two agencies — a route the CFTC chair has previously described as less durable than legislation.
CFTC Chair Michael Selig said in a post on X on Wednesday that his agency is "locked in and ready to ship its rules for the new frontier of finance," one day after the procedural vote.
"The outcome of yesterday's Senate vote was unfortunate," Selig said. "Americans deserve regulatory clarity, legal certainty, and consumer protections in crypto asset markets."
He added that the CFTC would help President Donald Trump deliver a crypto regulatory framework "using our existing statutory authorities."
— Mike Selig (@ChairmanSelig) September 16, 2026
SEC Chairman Paul Atkins echoed the commitment to agency action, also in a Wednesday post on X, thanking those who had worked on the bill across government and the industry.
"I have been unequivocal: 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," Atkins wrote, adding "stay tuned."
My thanks go to everyone who put so much effort into the CLARITY Act— across the Administration, Congress, investors, and innovators. Our collective conviction that America must continue to lead is indispensable. I have been unequivocal: with or without legislation, we will act…
— Paul Atkins (@SECPaulSAtkins) September 16, 2026
https://x.com/SECPaulSAtkins/status/2100256253645668860?s=20
The comments came after the Senate voted 49–50 on Tuesday on a procedural motion to advance the Clarity Act, falling short of the 60 votes needed to clear the hurdle. The legislation would establish a federal framework for crypto markets and clarify the respective responsibilities of the CFTC and the SEC. Senate leaders could bring the bill back for another vote, but the chances of a renewed attempt this year are slim to none given the remaining legislative calendar. For now, the question the bill was designed to settle — how oversight of digital asset markets is divided between the CFTC and the SEC — remains unresolved in statute.
Selig had already laid out his regulatory plans in August, saying he had directed staff to explore rules covering crypto exchanges and trading with borrowed funds. He also asked staff to work with developers on ways for blockchain-based finance protocols to operate legally in the U.S. At the time, Selig legislation remained his preferred approach, since a statutory framework would be harder for future administrations to reverse.
Atkins similarly signaled in late July that the SEC would act if the Clarity Act failed to advance, saying the Commission was "ready, willing, and able" to write crypto rules if Congress did not. The SEC followed through in mid-August, releasing its proposed rules for the industry under a framework called "Regulation Crypto Assets." With the chances of a renewed Senate attempt this year slim to none, those two rulemaking tracks are the immediate ones to watch.
Tuesday's vote followed 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.
Source: Decrypt
