SEC, CFTC Carve Out Limited Crypto-Linked Market Access After CLARITY Act Stalls

U.S. securities and derivatives regulators unveiled two targeted pathways for crypto-linked market access using existing legal authority after the Senate failed to move forward with the CLARITY Act. On Sept. 15, senators voted 49–50 against advancing H.R. 3633. SEC Chairman Paul Atkins tied that outcome to the agency's subsequent action, saying the SEC was proceeding under current statutory powers and framing the relief as a bridge toward longer-term rulemaking. The SEC order establishes a new "Tokenized Securities Venue" (TSV) category. A qualifying venue can match buyers and sellers through permissioned automated-market-maker liquidity pools without being treated as an exchange under the Exchange Act. The exemptions remain in effect through Sept. 17, 2031, unless amended by the SEC. Under the framework, Tier 1 stocks are capped at 75 symbols across a TSV and its affiliates, and each Tier 1 stock is limited to 0.25% of the prior month's average daily share volume. Tier 2 stocks are capped at 250 symbols, with each Tier 2 stock limited to 2.5% of average daily share volume. Eligible tokenized stocks must preserve dividend and voting rights equivalent to traditional shares. Synthetic-exposure tokens, rights, warrants, primary issuances and initial offerings are excluded. If a TSV plans to trade a stock tokenized by an unaffiliated third party, it must notify the issuer and wait at least 30 calendar days after the issuer receives the notice. Any issuer objection within that window prevents trading of the tokenized stock on that TSV. TSVs must set access standards, verify participants or wallet addresses, use public and auditable smart contracts, publish transaction data, maintain records, and halt trading when the underlying stock is halted on its primary exchange. Securities Act requirements, federal antifraud and antimanipulation rules, and sanctions compliance continue to apply. The same day, the CFTC's Market Participants Division issued Letter 2625, expanding relief previously granted to Phantom in Letter 2609. The letter permits qualifying software providers to display market and position data; market specific derivatives contracts and registered firms; solicit users; receive revenue-sharing or transaction-based fees; and transmit user-directed orders. The relief comes with limits: providers cannot hold customer assets, generate express buy or sell signals, or control order routing or execution. Users must be onboarded directly with a designated contract market, futures commission merchant or introducing broker. Funds securing derivatives positions must remain with a derivatives clearing organization or a clearing-member futures commission merchant. Letter 2625 addresses only the division's recommendation on introducing-broker or associated-person registration for the specified activities. It does not create a broad exemption from other registration categories or laws, is not binding on the CFTC, and may be modified, suspended or terminated. No company has been identified as committed to launch under either pathway. Neither step resolves the broader SEC–CFTC jurisdictional split, and neither provides an unconditional right of entry into the covered markets.