How the Clarity Act's Defeat Handed the SEC and CFTC the Wheel on Crypto
Washington crypto policy shifted from Congress to regulators after the Senate failed to advance a major market structure bill in a 49-50 procedural vote. Democrats opposed the motion, joined by a few Republicans, after President Trump’s crypto ties further strained bipartisan trust. Negotiations continued until the vote, but collapsed amid blame over whether Senate leaders forced an early showdown or Democrats were acting in bad faith. Despite the setback, several negotiating Democrats said the bill is not dead and pledged to keep working on the Clarity Act. Still, industry fatigue is growing, and many now see regulators as the likelier source of near-term rules. The SEC responded by unveiling an innovation exemption tied to tokenized assets, and the CFTC is also moving forward with crypto-related guidance and rulemaking. The result: crypto is getting more clarity, but from agencies rather than Congress.
