Altcoins News

Story: Clarity Act Fails in Senate, Sparking Immediate Response from SEC and CFTC

By James Thorp

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SEC Moves on Tokenized Stocks. With Congress stalled, regulators didn't wait around.

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What Regulators Are Filling In For Congress. The broader picture here is pretty striking. Congress spent months negotiating a bill designed to…

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The Clarity Act is dead. At least for now. The Senate voted 49-50 against advancing the crypto market structure bill, falling well short of the 60 votes needed to move forward —…

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Democrats voted as a bloc against it. They were joined by three Republicans: Senators Susan Collins, Josh Hawley, and Jerry Moran.

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Senator Angela Alsobrooks, a Democrat, said the need for regulation is real and growing. She pointed to more than 70 million Americans now involved in what she called an…

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With Congress stalled, regulators didn't wait around. The SEC moved quickly, announcing an innovation exemption tied directly to the Clarity Act's defeat.

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The reaction from inside the crypto sector was pretty enthusiastic. Tokenized equities have been a long-discussed idea, and having the SEC put a formal exemption in place gives…

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The CFTC didn't sit still either. The agency issued a no-action position covering passive software providers, which basically tells certain participants they won't face…

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See also: CFTC Moves Quickly to Submit Crypto Rulebook After CLARITY Act Fails in Senate

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The broader picture here is pretty striking. Congress spent months negotiating a bill designed to split jurisdiction between the SEC and CFTC, define what counts as a commodity…

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That's not necessarily a disaster. Regulatory frameworks built by agencies can move faster than legislation, and they can be updated more easily when markets shift.

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The CFTC's rulemaking proposal going to the White House is probably the bigger development to watch.

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For now, those providers are watching. The CFTC's no-action position for passive software providers gives some breathing room, but it's not a permanent fix.

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See also: CFTCs Major Crypto Asset Regulation Proposal Reaches White House for Review

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Lummis and her allies will probably try again. Alsobrooks says the bipartisan conversation is ongoing.

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