'Go time': SEC, CFTC prepare to push crypto rules as Clarity Act stalls in Senate

The Securities and Exchange Commission and Commodity Futures Trading Commission are signaling they will move ahead with crypto rulemaking using their existing authority after the U.S. Senate failed to advance the Clarity Act, potentially shifting the focus of U.S. digital asset regulation from Congress to the agencies.

The Senate on Tuesday voted 49-50 against the Clarity Act, which would regulate the digital asset industry comprehensively for the first time at the federal level. The bill needed 60 votes to move forward.

"Our collective conviction that America must continue to lead is indispensable," SEC Chairman Paul Atkin said Wednesday. "I have been unequivocal: with or without legislation, we will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future. Stay tuned."

CFTC Chair Mike Selig posted a similar message, saying the agency is "locked in and ready to ship its rules for the new frontier of finance."

"The outcome of yesterday's Senate vote was unfortunate. American investors deserve regulatory clarity, legal certainty, and consumer protections in crypto asset markets," CFTC Chair Mike Selig said in a statement. "President Trump promised to deliver a future-proof crypto asset regulatory market structure one way or another, and we will help him get the job done using our existing statutory authorities."

Early fallout

One Republican Senate aide told The Block's Sarah Wynn that they think the bill is dead, though some, like Sen. Thom Tillis, think there is still life for Clarity.

Democrats largely opposed the bill over concerns about President Donald Trump's crypto interests and ethics provisions, while Republicans rejected a Democratic counteroffer, leaving the legislation's path forward uncertain as the November elections approach.