CLARITY Act faces Senate setback as industry pivots to SEC and CFTC

The CLARITY Act failed to clear a Senate cloture vote with a 49-50 result, falling short of the 60-vote threshold. Senator Thom Tillis has filed a motion to reconsider, though industry leaders are increasingly looking toward the SEC and CFTC to establish regulatory frameworks in the interim. Ripple CEO Brad Garlinghouse noted that the industry remains optimistic about potential rules from SEC Chair Paul Atkins and CFTC Chair Selig. However, legal experts like Abhishek Vaidyanathan of NEAR and Orest Gavryliak of 1inch expressed concerns regarding the lack of long-term legislative certainty and the limited time remaining before the upcoming election. Polymarket data indicates the probability of the bill becoming law in 2026 has dropped to 5%.