Senate Fails to Pass Clarity Act; Future Uncertain
The U.S. Senate voted down the Clarity Act on Sept. 15, a bill intended to establish federal market-structure rules for cryptocurrencies and divide oversight between the SEC and CFTC. The failure of this key vote has led to uncertainty about future legislative action until after the November midterm elections. In response, some major cryptocurrencies like XRP fell by over 8%, while Ethereum and Solana also dropped in value. Despite the setback, regulators have indicated they are preparing alternative policies that align with what the Clarity Act aimed to accomplish. The SEC proposed Regulation Crypto Assets (RCA), which includes provisions for raising capital without full securities registration, while CFTC Chairman Michael Selig announced plans to evaluate crypto market rules under existing authority. The failure of the bill has left a regulatory gap in the industry, and although agency-led initiatives may provide temporary clarity, they lack the durability of formal legislation. The odds of the Clarity Act becoming law before 2027 are currently low.
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Topics: CFTC Clarity Act cryptocurrency SEC Senate vote