CFTC and SEC Double Down on Crypto After Clarity Act Defeat

The heads of the Commodity Futures Trading Commission and Securities and Exchange Commission pledged to press ahead with crypto regulation using their existing powers after the Senate failed to advance the Clarity Act.

In a post on X on Wednesday, CFTC Chair Mike Selig said his Commission is “locked in and ready to ship its rules for the new frontier of finance.”

“The outcome of yesterday’s Senate vote was unfortunate,” he said. “Americans deserve regulatory clarity, legal certainty, and consumer protections in crypto asset markets.”

Selig said the agency would help President Donald Trump deliver a crypto regulatory framework “using our existing statutory authorities.”

SEC Chairman Paul Atkins echoed the commitment to agency action in a Wednesday post on X, thanking those who had worked on the bill across government and the industry.

“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,” Atkins wrote, adding “stay tuned.”

On Tuesday, the Senate voted 49–50 on a procedural motion to advance the Clarity Act, falling short of the 60 votes required. The legislation would establish a federal framework for crypto markets and clarify the responsibilities of the CFTC and Securities and Exchange Commission. Senate leaders could bring it back for another vote, but the chances of another vote this year are slim to none given the remaining legislative calendar.

Selig outlined his plans in August, saying he had directed staff to explore rules covering crypto exchanges and trading with borrowed funds. He also asked staff to work with developers on ways for blockchain-based finance protocols to operate legally in the U.S.

At the time, Selig said legislation remained his preferred approach because it would make the framework harder for future administrations to reverse.

Atkins similarly signaled in late July that the SEC would act if the Clarity Act should fail to advance, saying at the time the Commission was “ready, willing, and able” to write crypto rules if Congress did not. The SEC then released its proposed rules for the industry in mid-August under a framework called “Regulation Crypto Assets.”

The Senate vote followed disagreements over ethics restrictions, developer protections and stablecoin rewards. Republicans said they had incorporated 126 substantive changes requested by Democrats, who sought further restrictions on public officials’ crypto interests and changes to other provisions.