Crypto Markets React to US Senate's Failed Clarity Vote and New SEC Rules
The US Senate failed to pass the Digital Asset Market Clarity (CLARITY) Act, which aimed to provide clarity on digital asset market structure. The motion received just 49 votes in favor and 50 against, falling short of the required 60 votes.
However, Republican Senator Thom Tillis's 'no' vote was not as expected, as he confirmed that he had switched sides at the last minute to enable a new vote in future. This has raised hopes that CLARITY could still pass, despite the politics and limited legislative days available making it unlikely.
SEC Chair proposed new rules in absence of CLARITY, with the US Securities and Exchange Commission announcing a five-year exemption allowing limited trading of tokenized US stocks on decentralized public blockchains. This Innovation Exemption does not exempt 'synthetic' stock tokens that do not provide holders with all the same rights as traditional stocks.
The Commodity Futures Trading Commission (CFTC) also proposed new crypto rules, including a no-action position allowing 'passive software' providers to connect users to regulated derivatives firms and exchanges without registering as introducing brokers or associated persons.