CLARITY Act Fails, But Rulemaking Speeds Up Through Project Crypto

The Comprehensive Clarity Act, also known as H.R. 3633, has been struggling to pass in the Senate, with prediction-market odds dropping to around 31% for its passage in 2026.

This bill would have given the Commodity Futures Trading Commission (CFTC) oversight of digital commodities while limiting the Securities and Exchange Commission's (SEC) jurisdiction over certain asset classes.

Bernstein analysts suggest that the bill's likely failure could actually accelerate rulemaking by both the SEC and CFTC through their joint initiative, Project Crypto.

This project focuses on taxonomy, self-custody interpretations, and possible exemptions to spur innovation within the market, potentially delivering clearer definitions for what counts as a digital commodity versus a security.