Senate Fails to Pass CLARITY Act, Regulators Fill Regulatory Gap

Federal lawmakers in the US Senate narrowly rejected the CLARITY Act, which aimed to clarify regulatory frameworks for cryptocurrency and digital assets. However, Faustine Fleuret, global head of public affairs at DeFi lending protocol Morpho, argues that this setback is 'real but partial.'

The bill failed by a single vote, with 49 senators declining to invoke cloture on the motion to proceed. According to Fleuret, lawmakers had not agreed on ethics rules for elected officials, which was the main reason for the delay.

Fleuret points out that regulators are already filling the gap and providing clarity for DeFi builders targeting US users. She cites several recent federal actions, including Commissioner Hester Peirce's statement on crypto vaults and onchain lending strategies in July 2026, and the SEC's Regulation Crypto Assets and an innovation exemption for trading tokenized NMS stocks.

Morpho is not seeking a new rulebook, Fleuret said, but rather recognition of what makes non-custodial vaults different. The company is making that case directly to regulators, and Fleuret believes that once firms build on an agency framework, it tends to stay.