Senate Rejects Clarity Act, Leaving Crypto Oversight in Limbo
The Senate has rejected a procedural vote to advance the Clarity Act, a bill aimed at clarifying oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
After months of negotiations, disagreements over ethics provisions, banking concerns, and other provisions led to bipartisan support falling apart.
The Clarity Act proposed dividing oversight of digital assets between the SEC and CFTC, as well as addressing illicit finance, decentralized finance, and stablecoin rewards.
With the bill stalled, the SEC and CFTC are now positioned to shape crypto policy through rulemaking, which could set different expectations for digital asset businesses, investors, and financial institutions.