Regulators Take Center Stage as CLARITY Act Stalls in Senate

Michael Saylor has shifted his focus from the stalled CLARITY Act to regulators taking action on crypto rules. In a post on X, he wrote that banks will likely widen Bitcoin custody and lending against the asset now that Congress is no longer the primary route for progress.

Saylor's pivot away from legislative efforts comes after the Senate rejected cloture on the Digital Asset Market Clarity Act by a vote of 49 to 50. The bill, which would have split oversight between the SEC and CFTC and set registration rules for exchanges, brokers, and dealers, needed 60 votes.

The measure failed at its first procedural step, and Republicans had presented a revised version with 126 changes requested by Democrats. Former CFTC Chairman J. Christopher Giancarlo said the loss was disappointing but would not stop innovation in the US, noting that SEC Chairman Paul Atkins and current CFTC Chairman Michael Selig will continue to develop the industry under their current authority.