Crypto industry leaders are looking to US financial regulators to fill the regulatory gap after the Senate on Tuesday failed to advance a major crypto bill establishing a regulatory framework for digital assets.
The Senate voted 49-50 on a motion to invoke cloture and advance the CLARITY Act, short of the 60 votes needed. Industry executives said the result was a disappointment, but pointed to potential rulemaking from the US Securities and Exchange Commission and Commodity Futures Trading Commission as the next best potential source of clarity.
Source: Brian Armstrong
“There is still reason for optimism for crypto in the United States. Now, the SEC, under Chair Atkins, and the CFTC, under Chair Selig, will continue to work hard to issue rules to fill the legislative gap and we will continue to be actively engaged in that rulemaking process,” said Ripple CEO Brad Garlinghouse on X.
At the Solana Policy Institute Summit on Monday, SEC Chair Paul Atkins again committed to delivering clearer crypto rules with or without legislative support. However, theres concern that this solution may only grant temporary reprieve for the industry.
“Rejecting the bill leaves firms completely dependent on agency guidance and ongoing administrative discretion,” added NEAR chief legal officer Abhishek Vaidyanathan.
“Firms setting their 2027 budgets would face another prolonged delay, forcing them back into case-by-case judgments and repeated legal work while counterparties continue to price in regulatory uncertainty,” he added.
Bitget Wallet chief operating officer Alvin Kan told Cointelegraph that failure to advance the bill on Tuesday is “continued uncertainty over how securities, commodities and money-transmission rules apply across different products.”
Another attempt for CLARITY
The CLARITY Act could face another cloture vote after Senator Thom Tillis moved to reconsider Tuesdays failed attempt. Industry executives remain divided over whether Congress can ultimately pass the legislation before its term ends in January.
Source: Senator Thom Tillis
“Todays result is a delay, not a verdict. Legislation of this scale rarely moves in a straight line, and a cloture vote can be brought again,” 1inch chief legal officer Orest Gavryliak said in comments shared with Cointelegraph.
Related: Crypto stocks slide after CLARITY Act fails to advance in Senate
Vaidyanathan was less optimistic about any immediate prospects, saying the next Congress was the likely next opportunity to address crypto market structure.
“Now that cloture failed, the next Congress is the likely next opportunity to address crypto market structure. The House has already canceled its weeks of September 21 and 28, and the Senates state work period begins October 5 ahead of the November 3 election.”
Polymarket odds of the CLARITY Act being signed into law in 2026 fell to 5% on Tuesday, the lowest probability since the market was opened in January.