TLDR:
- The Senate vote fell short of the 60 votes needed, but the CLARITY Act is not formally rejected
- The SEC and CFTC plan to act under existing authority, and Cooper expects rules in six-plus months.
- Agency rules lack the permanence of legislation and remain open to court challenges and reversals.
- Bitcoin’s commodity status and spot ETF access limit its direct exposure and may lift BTC dominance.
The CLARITY Act failed to advance in the U.S. Senate on September 15. U.S. crypto regulation now shifts from Congress toward federal agencies. The procedural vote fell short of the 60 votes required.
It was not a final rejection of the bill, and revisions and another vote remain possible. However, passage this year looks increasingly difficult.
Disputes over political conflicts of interest, stablecoin rewards, and investor protection stalled the effort. Bitcoin’s direct exposure appears limited, according to XWIN Japan.
Agencies Take the Lead Under Existing Authority
Attention now turns to the SEC and CFTC and what they can do under existing authority. The CLARITY Act stall leaves the agencies as the main path for near-term rules.
The setback delays legislation, but it does not end U.S. crypto rulemaking. Congress leaves in early October, so little time remains for another vote.
SEC Chairman Paul Atkins said the agency will act within its statutory authority, with or without legislation. CFTC Chairman Michael Selig said the agency is ready to ship its rules. Both statements came after the CLARITY Act vote.
The SEC proposed Regulation Crypto Assets in August. The two agencies also coordinated through Project Crypto, including a joint interpretation in March. Charley Cooper of Ava Labs expects rules to need six-plus months before taking shape.
Industry Reaction and Limits of Agency Rules
Agency action does not carry the same permanence as legislation. Atkins acknowledged this limit in August. He called legislation indispensable for rules that a future regulator cannot easily reverse. Such rules also remain open to court challenges and policy reversals.
Cooper spoke at the Avalanche Summit and cited yield-bearing stablecoins as one issue. He also pointed to the difficulty of moving partisan bills in a midterm year. He said the result was not a surprise. Still, he said the industry should not wait for permission.
Panelists at the Avalanche Summit called the CLARITY Act vote a setback, not a terminal failure. They represented the Digital Chamber, Blockchain Association, Crypto Council for Innovation, and DeFi Education Fund.
Many policy issues had been settled with congressional staff before political disputes took over in the final hours. Ethics conflicts remain one obstacle, and developer protections under the Blockchain Regulatory Certainty Act also became contentious.
What the Setback Means for Bitcoin
XWIN Japan said Bitcoin’s commodity treatment and established spot ETF access offer more clarity. Many altcoins and DeFi services operate with less certainty by comparison.
Prolonged uncertainty could reinforce Bitcoin’s relative appeal, the analysis noted. That shift could lift BTC dominance. Meanwhile, the lack of legislation may slow real-world asset tokenization and other institutional projects. The work will continue either way.
Bitcoin’s decline also coincided with monetary tightening. Attributing it solely to the CLARITY Act would be misleading, the analysis said.
Near-term direction will likely depend on ETF flows, Fed expectations, Treasury yields, the dollar, and BTC exchange inflows.
The post Crypto Rules Move to Agencies: What the CLARITY Act Setback Means for BTC appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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