CLARITY Act Fails Senate Vote Digital Asset Regulation Left in Limbo

The CLARITY Act, aimed at creating a federal regulatory framework for digital assets, stalled in the Senate after failing to secure the necessary 60 votes to proceed. The bill, which sought to divide jurisdiction between the CFTC and SEC, now faces an uncertain future, with passage in this Congress deemed unlikely due to upcoming midterm elections.

With Congress stalled, the CFTC is advancing its own regulatory efforts. On September 17, 2026, the agency submitted a rulemaking proposal to the White House for review, though the text remains unpublished. CFTC Chairman Michael Selig previously suggested new rules could create a designated 'crypto asset market' for leveraged trading under CFTC oversight.

The CFTC’s rules will likely align with the March 2026 Joint Interpretation by the SEC and CFTC, which categorizes crypto assets into digital commodities, collectibles, tools, stablecoins, and securities. Meanwhile, the SEC’s proposed Regulation Crypto Assets remains open for public comment until October 20, 2026.

In the absence of federal legislation, state-level licensing and enforcement regimes will continue to govern much of the digital asset industry. Companies are advised to classify their tokens according to the SEC-CFTC taxonomy, ensure state compliance, and consider submitting comments on the SEC’s proposal.