[Clarity Act Fails in Senate; SEC and CFTC Take Charge of Crypto Regulation] GoldNews reports that, according to POLITICO, the U.S. Senate failed to advance the Clarity Act (Digital Asset Market Structure Act) on Tuesday, shifting primary crypto regulatory authority to the SEC and CFTC. SEC Chair Paul Atkins and CFTC Chair Michael Selig have spent months laying the groundwork for this transition. Selig stated he will leverage existing statutory powers, adding, "The CFTC is fully prepared and ready to roll out rules for the new financial frontier." Atkins declared, "Whether or not legislation passes, we will act decisively within the SEC’s statutory authority." Senate Banking Committee Chairman Tim Scott said it is now time for the two agencies to establish clear rules for digital assets before Congress enacts legislation. The report notes that without legislative backing, agency rules are more vulnerable to legal challenges and future Democratic administrations; rulemaking typically takes 18 to 24 months, requiring completion before the 2028 election. The Democratic Party remains cautious about the two agencies’ pro-crypto stance.
Clarity Act Fails in Senate; SEC and CFTC Take Lead in Crypto Regulation
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Summary
The U.S. Senate failed to advance the Clarity Act, leaving crypto oversight to the SEC and CFTC. SEC Chair Gary Gensler and CFTC Chair Rostin Behnam have been preparing for this shift. Behnam said the CFTC will act under its existing authority, while Gensler emphasized that the SEC will move forward decisively. Senate Banking Chair Tim Scott urged the agencies to establish clear rules before Congress acts. Without legislation, rules may face legal challenges and change with each administration. Rulemaking could take 1.5 to 2 years, with a deadline before the 2028 election. Democrats remain cautious about the agencies’ pro-crypto stance. Liquidity and crypto markets will be closely monitored as MiCA (EU Markets in Crypto-Assets Regulation) sets a global benchmark.
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