US Senate Rejects CLARITY Act, Yet SEC and CFTC Move to Clarify Regulatory Landscape

The U.S. Senate rejected the CLARITY Act in a 49-50 vote on September 15, ending a 425-day legislative effort to establish clear crypto market rules. Despite the bill's failure, the SEC and CFTC have begun taking independent administrative actions that address key regulatory gaps, signaling a shift toward agency-led oversight. The bill's defeat was largely driven by partisan disputes over ethics clauses regarding government officials' crypto holdings and lobbying from banks concerned about stablecoin interest payments.