Crypto Industry Braces for Life Without the CLARITY Act as Senate Stalls

The crypto industry’s push for the Digital Asset Market Clarity Act appears to be losing steam after missing a key procedural Senate vote, but industry observers say a failure wouldn’t be fatal for US crypto policy.

Regulatory Gaps Remain Without Legislation

Without the bill, the CFTC would lack explicit authority to oversee commodity trading for assets like bitcoin and ether, creating a gap in oversight. However, the SEC and CFTC are expected to continue using existing authority to fill some of these gaps, including advancing a tokenized securities framework and a proposed “regulation crypto” rule aimed at easing fundraising for crypto developers. SEC Chair Paul Atkins has repeatedly said only Congress can deliver permanent, durable policy.

Other Agencies Keep Moving Forward

Banking regulators have been issuing crypto charters at a faster pace, while the Federal Reserve works on tailored payments access for digital asset firms. The Treasury Department and IRS continue rolling out crypto-specific policies as well.

Stablecoin Lobbying May Have Doomed the Bill

Banking industry pressure to restrict stablecoin reward programs reportedly complicated the bill’s path. Without CLARITY, GENIUS Act rules would continue governing stablecoin rewards, which some argue benefits crypto firms competing against traditional banks. a16z crypto’s Miles Jennings suggested banking lobbyists opposing CLARITY may be accelerating their own decline.