Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Add preferred source
The U.S. Senate failed to advance the CLARITY Act, a bill that would have created the first federal regulatory framework for digital assets, falling short of the 60 votes needed on a procedural motion. Former CFTC Chairman Christopher Giancarlo said the setback would not stop the “march of innovation,” emphasizing that SEC Chair Paul Atkins and CFTC Chair Michael Selig remain committed to building a sound regulatory framework through their existing authorities. The bill, which sought to divide oversight between the two agencies and regulate DeFi platforms and crypto exchanges, stalled over ethics provisions and opposition from 18 state attorneys general. Bitcoin briefly fell below $75,000 following the vote. With limited legislative days remaining this year, agency rulemaking is expected to be the primary path forward.
Key Elements
The collapse of the CLARITY Act in the Senate will not derail efforts to build a workable regulatory framework for digital assets, according to a former top derivatives regulator who said the two main federal agencies remain committed to the task.
Speaking with Eleanor Terrett, host of Crypto in America, on Sept. 15, Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission, acknowledged disappointment that the legislation failed to clear a procedural hurdle but argued the setback would not halt what he called the “march of innovation” in the United States.
The former CFTC chief pointed to the current leadership at both agencies as evidence that rulemaking will continue even without congressional action. Paul Atkins at the Securities and Exchange Commission and Michael Selig at the CFTC “are determined to carry out the missions given to them and put in place a sound regulatory framework,” Giancarlo said.
Such a framework, he added, would ensure that “financial innovation, market modernization and economic growth occur within, not outside, the bounds of U.S. law.”
The Senate voted 50-50 on a cloture motion Tuesday, falling ten votes short of the 60 needed to advance the Digital Asset Market Clarity Act to floor debate. With fewer than 36 legislative days remaining before a new Congress is sworn in after November’s midterm elections, the bill is unlikely to see further action this year.
What the legislation sought to do
The measure was designed to establish the country’s first comprehensive regulatory framework for digital assets by drawing a clear jurisdictional line between the CFTC and the SEC. It introduced the concept of “ancillary assets” — network tokens whose value may depend on entrepreneurial or managerial efforts — and would have treated them as commodities while imposing specific disclosure requirements.
The bill also targeted decentralized finance. Recent revisions would have required CFTC registration for spot digital-commodity activity conducted on centralized DeFi protocols, focusing on platforms that appear decentralized but have identifiable parties retaining meaningful control. Exchanges, brokers and dealers through which most Americans buy and sell crypto would have been brought under a defined federal registration and supervision regime.
The legislation hit resistance before Congress’s August recess over proposed ethics provisions that would bar government officials and their families from issuing or profiting from digital assets while in office. President Donald Trump agreed to most of a bipartisan proposal to strengthen those restrictions ahead of the vote, but new opposition emerged Monday from 18 state attorneys general who argued the bill would weaken states’ ability to police crypto fraud and misconduct.
Digital asset prices declined following the procedural vote. Bitcoin briefly traded below $75,000, down more than 5% on the day
With the legislative path effectively closed for the year, industry participants increasingly expect the SEC and CFTC to use their existing authorities to write rules, rather than waiting for Congress to pass market-structure legislation. Giancarlo’s comments align with that view, signaling that the regulatory agencies will be the primary drivers of policy in the near term.
The unresolved question of how crypto will be regulated at the federal level — including the respective oversight roles of the two agencies — remains a central concern for market participants. The CLARITY Act’s failure leaves that question open, but the former regulator’s remarks suggest that agency-level action will fill at least part of the void.
Market watchers will be watching closely for signals from the SEC and CFTC on rulemaking priorities in the coming months, as the window for congressional action narrows.
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
Source: finance.biggo.com