CLARITY Act Stalls in Senate; Crypto Regulation Shifts Toward Administrative Path

The Digital Asset Market Clarity Act (CLARITY Act) failed to advance in the US Senate on September 15, falling short of the 60 votes required to end debate with a 49-50 result. While Senator Thom Tillis has filed a motion to reconsider, the bill faces significant time constraints. In response to the legislative stall, SEC Chair Paul Atkins emphasized that the SEC will continue its regulatory reform efforts, including the 'Project Crypto' initiative and proposed rules for digital asset investment contracts. Industry leaders like Ripple CEO Brad Garlinghouse are now looking toward the SEC and CFTC to fill the regulatory gap through administrative rulemaking, though experts note that such rules lack the long-term legal certainty provided by congressional legislation.