SEC and CFTC Chairmen Commit to Rulemaking Without CLARITY Act

Both U.S. market regulators announced Wednesday that they will proceed with cryptocurrency rulemaking even though the Senate failed to advance the CLARITY Act.

Regulators’ Statements

CFTC Chairman Michael Selig posted at 10:35 a.m. ET that the agency is “locked in and ready to ship its rules for the new frontier of finance.” He added that the CFTC will use its existing statutory authorities to create a market‑structure framework.

SEC Chairman Paul Atkins posted at 12:11 p.m. ET, stating the SEC will “act decisively within the SEC's statutory authority” to provide certainty for investors and innovators, with or without legislation.

Legislative Context

The Senate rejected cloture on H.R. 3633, the market‑structure bill, by a vote of 49‑50, falling short of the 60 votes needed. All 49 votes to proceed came from Republicans.

Current Rulemaking Activity

The SEC has a proposed “Regulation Crypto Assets” rule in the Federal Register, open for public comment until Oct. 20. The proposal would create two registration exemptions for crypto offerings—up to $5 million over four years and up to $75 million in any 12‑month period—and a conditional safe harbor for certain crypto assets.

The SEC also announced two additional proposals: transfer‑agent rules and a custody framework that would allow investment advisers to self‑custody crypto assets and use state trust companies as custodians.

The CFTC has not yet published a crypto market‑structure rule. Its recent work includes FAQs on blockchain activities, a no‑action letter for a self‑custodial wallet provider, and a joint statement with the SEC on the application of securities laws to crypto assets.

Market Reaction

Polymarket’s odds for the CLARITY Act being signed were 6.6% after the Senate vote. Bitcoin was trading around $75,883, while XRP fell to $1.28, Ether rose to $2,403, Solana slipped to $98.04, and BNB edged up to $716.42.