Regulatory Clarity: Crypto Community Breathes Sigh of Relief Amid CLARITY Act Setback

The CLARITY Act failed to advance in the Senate by a single vote, but the crypto community can breathe a sigh of relief. According to Faustine Fleuret, global head of public affairs at DeFi lending protocol Morpho, the bill's failure is not a vote against regulating crypto. Instead, it means lawmakers did not agree on ethics rules for elected officials.

Fleuret pointed out that regulators are already filling the gap with recent federal actions. The SEC has issued Regulation Crypto Assets and an innovation exemption for trading tokenized NMS stocks. Additionally, Commissioner Hester Peirce's July 2026 statement on crypto vaults and onchain lending strategies provides some clarity.

Morpho is not seeking a new rulebook, but rather recognition of what makes non-custodial vaults different. Fleuret emphasized that only a statute can settle jurisdiction and give builders long-term certainty.