US Crypto Regulators Take Centre Stage as Clarity Bill Fails

The US crypto regulatory landscape has taken a significant shift after the Senate blocked a procedural move to advance the 'Clarity' bill. The 49-50 vote, which saw Democrats unanimously opposing the measure, led to a blame game between Republicans and Democrats.

Senator Cynthia Lummis stated that Democrats were not serious about consumer protection and safeguarding US leadership. However, some Democrats involved in negotiations claimed that the bill had not been scrapped entirely, with Senator Angela Alsobrooks saying 'the Clarity Act will not disappear.'

The industry is now focusing on regulators rather than Congress, with agency guidance being seen as a more realistic path forward. The SEC has unveiled steps to open a path for on-chain trading of tokenised US stocks, and the CFTC has taken separate action by setting out a zero-tolerance stance toward passive software providers.