Clarity Act Shelved After Failing Cloture Vote in Senate
The Digital Asset Market Clarity Act (CLARITY Act) has effectively been shelved for 2026, after failing to pass a cloture vote in the Senate. The bill would have provided clarity on crypto regulation by establishing a statutory line between digital commodities and investment-contract assets, creating a federal registration path for intermediaries with customer-asset segregation, and locking these into law.
The failure of the CLARITY Act means that the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will continue to draft frameworks under their existing authority. SEC Chairman Paul Atkins has stated that the agency will proceed with rules regardless of the statute, using its existing power.
CFTC Chair Michael Selig has also directed staff to draft a market-structure regime under existing Commodity Exchange Act authority. This includes establishing a crypto asset market category, bringing leveraged and margined trading under CFTC oversight, and direct engagement with on-chain developers.