Crypto Regulation: Clarity Act's Uncertain Fate Could Lead to Further Action from SEC and CFTC

The Clarity Act's uncertain fate in the Senate could lead to further action from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), according to a recent Bernstein research note. The analysts believe that even if the bill fails, the two agencies will continue to work together through Project Crypto, which aims to coordinate oversight and reduce jurisdictional overlap.

The SEC and CFTC have already made significant progress in developing rules for crypto assets, including token offerings, broker-dealer custody, and trading venues. They issued a joint interpretation clarifying how securities laws apply to crypto assets earlier this year. Bernstein expects continued interpretive guidance offering clearer digital asset classifications and setting expectations for decentralized finance and self-custody.

The Clarity Act, which has stalled in the Senate, would provide long-term certainty for the industry if passed. However, analysts believe that the SEC and CFTC can keep expanding the federal framework through coordinated action if Congress cannot deliver the bill before its scheduled August recess. Senators Thom Tillis and Ruben Gallego submitted a revised ethics compromise to the White House last month in an effort to build additional bipartisan support.

The coming week is the Senate's remaining opportunity to pass the Clarity Act, which was introduced by Representatives French Hill and Glenn Thompson in May 2025. Bernstein still views the bill as the preferred path to long-term certainty for the industry.