US Crypto Regulators Move Forward While CLARITY Act Remains Stalled

The Senate vote on September 15 fell short of the 60 votes needed to invoke cloture on the CLARITY Act, halting debate on a comprehensive federal framework for digital asset markets. In the absence of new legislation, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are advancing separate regulatory actions using their existing authorities.

SEC actions

In March, the SEC released an interpretive guidance that categorizes crypto assets into five groups, covering digital commodities, collectibles, tools, stablecoins and digital securities. The guidance does not create a new regulator for spot digital commodity markets but clarifies how existing securities laws apply to various transactions.

In August, the SEC proposed a rule that would offer exemptions for crypto offerings up to $5 million and $75 million, with a public comment period ending in October. A separate exemption for tokenized stock trading, issued on September 17, will remain in effect until 2031 and applies to a defined venue model for trading tokenized listed stocks.

CFTC initiatives

The CFTC submitted a “crypto markets” measure to the White House for executive review on September 17. The filing, labeled as a prerule submission, indicates the agency’s intent to develop rules for tokenized collateral and 24‑hour trading, but the draft text has not been released for public inspection.

CFTC Chair Michael Selig outlined the agency’s direction at a Treasury market conference on September 22, emphasizing work on stablecoins as derivatives collateral and the potential for continuous trading of certain crypto products.

Implications of the stalled bill

The CLARITY Act was designed to split oversight of digital assets between the SEC and CFTC and to create a registration regime for digital‑commodity intermediaries. With the Senate vote failing to reach the cloture threshold, the bill remains pending, and regulators are left to fill gaps through interpretations, exemptions, and proposed rules.

While these regulatory steps provide guidance for market participants, they do not establish a comprehensive statutory framework for spot digital commodity exchanges, the core objective of the CLARITY legislation.