SEC and CFTC Unveil Plan B Amid CLARITY Act Failure

Caroline D. Pham, former acting CFTC Chairman and CEO of MoonPay Institutional, made a surprising comment on X that caught the attention of the XRP community: 'There was always a Plan B.'

Pham's statement refers to the SEC and CFTC's rulemaking process, particularly the failed CLARITY Act vote on September 15. The bill fell short by 11 votes, failing to advance to floor debate.

The legislative window has now closed ahead of October's election recess, shifting regulatory focus from Congress to the agencies.

The SEC took swift action after the vote, with Chairman Paul Atkins promising to act within the commission's statutory authority. On August 18, the SEC proposed Regulation Crypto Assets, offering two registration exemptions for crypto investment contracts. This was followed by an overhaul of transfer agent rules on September 1, allowing blockchain and distributed ledger technology for securities ownership records.

The CFTC also moved quickly, with Chairman Michael Selig stating his agency was 'locked in and ready to ship rules.' On September 17, the CFTC submitted Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets to the White House Office of Information and Regulatory Affairs. The same day, it issued Staff Letter 26-25, expanding no-action relief for passive software providers.