Regulators Step Up After CLARITY Act Fails in Senate Vote

The Senate's failed vote on the CLARITY Act has shifted attention to what regulatory agencies can do under their existing authority. The SEC and CFTC are taking a bigger role in shaping the crypto industry, with agency officials signaling they will move ahead with rulemaking efforts.

Charley Cooper, President of Ava Labs and former CFTC Chief of Staff and Chief Operating Officer, said the failure to pass the CLARITY Act was 'not a surprise.' He expects the agencies' existing rulemaking push to take on greater importance, but cautions that it may take six-plus months for these rules to be implemented.

SEC Chairman Paul Atkins and CFTC Chairman Michael Selig have both stated their intentions to move forward with regulation. The SEC had already proposed Regulation Crypto Assets in August, a framework for certain investment contracts involving crypto assets.