The word “CLARITY” has been doing rounds on Crypto Twitter for months, one senator promising it’s finally coming, the next going live to declare it dead on arrival. Somewhere between “most important crypto bill in history” and “dead on arrival,” the September 15 deadline is closing in fast.
Adrian Wall, Managing Director at the Digital Sovereignty Alliance, in an interview with Coinpedia, explained that the September 15 vote is a cloture motion on the motion to proceed, requiring 60 votes to advance, not final passage.
Clearing it would open the bill to floor debate and amendments. Failing it would halt the process entirely for this session, Wall said in an interview with Coinpedia, with the Senate’s shrinking calendar ahead of midterm campaigning making a near-term second attempt unlikely.
What the Bill Would Change
The CLARITY Act aims to resolve a jurisdictional gap that has left crypto companies in the US without clear regulatory guidance. It would establish a statutory test determining when a blockchain network and its associated token qualify as a “digital commodity,” based on factors including network control and maturity.
Token offerings structured as investment contracts would remain under SEC securities law; those meeting the digital commodity threshold would fall under CFTC oversight instead. The bill also sets registration, disclosure, customer protection, and anti-money-laundering requirements for exchanges and intermediaries serving US customers.
Wall said the legislation is designed to let companies answer three basic questions they currently cannot: what their asset is, which regulator oversees them, and what rules they must follow.
A Bill That Has Already Outpaced Its Predecessor
CLARITY has progressed further than any prior US crypto market structure bill. Its predecessor, FIT21, passed the House 279-136 in May 2024 but never received a Senate committee markup or floor vote before expiring with that Congress.
CLARITY has cleared the House 294-134 and the Senate Banking Committee 15-9, with a cloture motion now scheduled for a specific floor date, a level of procedural progress Wall said no earlier attempt achieved.
If the Vote Fails
A failed cloture vote would not end the push for legislation entirely, Wall said, but would push any comprehensive rewrite into the next Congress. Individual provisions, particularly nearly finalized language on stablecoin yield, could resurface in narrower standalone bills. In the meantime, the SEC would likely continue addressing gaps through rulemaking.
Why SEC Rulemaking Isn’t a Full Substitute
The SEC proposed its own rule in August, Regulation Crypto Assets, creating two offering exemptions for token issuers and preempting conflicting state securities rules. Wall said the rule is useful but limited in scope, covering only the fundraising side of the market and leaving CFTC jurisdiction over spot trading untouched. Because it was issued through rulemaking rather than statute, it also remains vulnerable to reversal by a future commission or a court challenge.
“A rule can hand out exemptions; it cannot create a statutory classification test or move jurisdiction,” Wall said, adding that the SEC acting alone underscores why agency rulemaking cannot substitute for durable, bipartisan legislation.