U.S. Senate Stalls "Clarity Act"; SEC and CFTC Move to Fill Regulatory Gap

According to CoinDesk, Washington's focus on crypto oversight is shifting after the U.S. Senate failed to move forward with the Clarity Act, a bill aimed at setting market-structure rules for digital assets. The setback has slowed legislative momentum and is giving regulators—particularly the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—more room to shape policy through their own actions. The measure was blocked on a procedural vote, 49–50, falling short of the 60 votes needed to advance. All Democratic senators voted no, joined by three Republicans. Republican Sen. Thom Tillis initially voted yes but later switched to no, a move the report said was intended to preserve procedural options for future consideration. Last-minute bipartisan negotiations collapsed, with both parties blaming the other. Negotiations could still resume. Seven Democratic senators involved in talks said the bill is not dead but temporarily stalled, and pledged to keep pursuing bipartisan discussions with the goal of reviving it. Foreign media cited in the report said Democrats are not broadly opposed to creating a crypto regulatory framework, but have concerns about the pace of the effort and the political context around it. The report also pointed to former President Donald Trump's crypto-related business activities as a factor that has reduced some Democrats' willingness to cooperate with Republicans. With Congress stuck, industry attention is increasingly turning to regulators. Kristin Smith, president of the Solana Policy Institute, said Congress had previously advanced related legislation but failed to complete the final steps, making regulatory guidance the more viable path in the near term. SEC Chair Paul Atkins tied the legislative impasse to a new innovation-focused exemption. This week, the SEC announced steps to enable on-chain trading of tokenized U.S. stocks. On the derivatives side, CFTC staff issued a no-action letter covering passive software providers and submitted broader crypto market rule proposals to the White House for review. The report said details of the CFTC proposal have not yet been made public.