US Crypto Regulation Chaos as CLARITY Act Stalls in Senate

The CLARITY Act stalled in the Senate on September 15 after failing to clear the 60-vote threshold needed to advance. This leaves the US without a broad market-structure framework for crypto.

The SEC and CFTC were already coordinating on digital assets before the vote, signing an official memorandum of understanding in March aimed at clarifying product definitions and modernizing trading rules.

The main divide remains between the SEC and CFTC. The SEC is responsible for applying federal securities laws when a crypto asset or token falls within securities law. The CFTC oversees crypto futures, options, and derivatives, but its authority over the spot market is narrower.

Regulators are moving ahead with rulemaking proposals despite the failed Senate vote. The CFTC has sent a new crypto-market rulemaking proposal into White House regulatory review, signaling it will use existing authority to oversee the space.