Regulators Take the Reins as CLARITY Act Stalls in Senate

Bitcoin holders and banks are waiting for regulators to clarify crypto's legal status after the Senate blocked the CLARITY Act vote. The bill, which aimed to split oversight of digital assets between the SEC and CFTC, needed 60 votes but only received 49.

Michael Saylor, CEO of MicroStrategy, wrote on X that progress need not wait for Congress. He expects regulators to write rules under existing law now that the CLARITY Act has stalled.

Saylor believes banks will widen Bitcoin custody and lending against the asset, and more capital will move towards Bitcoin and digital credit. He also pointed to the GENIUS Act as support for stablecoin adoption.

Former CFTC Chairman J. Christopher Giancarlo said that the loss of the CLARITY Act was a disappointment but would not stop innovation in the US. SEC Chairman Paul Atkins has stated that his agency will keep going regardless of what Congress does.