The CLARITY Act was supposed to settle who regulates crypto in the United States. Instead, the Senate blocked it from moving forward — and regulators are no longer waiting. SEC Chair Paul Atkins and CFTC Chair Michael Selig are now pushing ahead with new crypto rules using powers their agencies already have.
The shift became obvious almost immediately after the Senate vote. Atkins promised action “with or without legislation.” Selig said the CFTC was “locked in and ready to ship” its rules. Within two days, the SEC had opened a new route for tokenized-stock trading, while a broad CFTC crypto-market rulemaking appeared in the White House regulatory review system.
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On September 15, the Senate voted 49-50 against invoking cloture on the motion to proceed with the Digital Asset Market Clarity Act. Sixty votes were required.
The vote did not permanently kill the bill. Republican Senator Thom Tillis voted against cloture specifically so he could enter a motion to reconsider, leaving a procedural path for another vote. But the legislative window in 2026 is now extremely narrow.
The bill was designed to establish a statutory framework for digital assets and define how regulatory responsibility would be divided between the SEC and CFTC.
Negotiations had become increasingly difficult. Democratic lawmakers sought stronger ethics restrictions related to public officials’ crypto holdings, while other disputes included stablecoin rewards, developer protections and the treatment of different parts of the crypto market. Four Republican senators also voted against cloture, although Tillis’s vote was procedural.
That leaves a problem: crypto companies still want regulatory certainty, but Congress has not delivered the comprehensive law they expected.
The answer from Atkins and Selig is increasingly clear: move ahead with new crypto rules wherever existing law allows.
Because both regulators had already been preparing for this possibility.
Atkins launched Project Crypto to modernize SEC regulation for blockchain-based markets. In January 2026, the SEC and CFTC turned it into a joint effort aimed at coordinating federal crypto oversight. In March, the two agencies issued an interpretation explaining how existing securities laws apply to different categories of crypto assets.
Selig had also warned months before the Senate vote that if Congress failed to act, regulators might end up “writing all the rules.”
That is now happening.
After the CLARITY Act stalled, Atkins said the SEC would act decisively within its existing statutory authority. Selig made essentially the same commitment for the CFTC.
The result could be a strange regulatory compromise: Congress still has not created one comprehensive crypto law, but agencies may gradually construct much of the operating framework through interpretations, exemptions and formal rulemaking.
The SEC had already proposed one major package before the Senate vote.
In August, the agency unveiled “Regulation Crypto Assets.” The proposal would create two exemptions for certain investment-contract offerings involving crypto assets.
One would allow offerings of up to $5 million over four years. Another would permit offerings of up to $75 million during a 12-month period, subject to disclosure and other requirements.
The SEC also proposed a conditional safe harbor designed to clarify when a crypto-related investment contract has ended and the underlying asset is no longer treated as subject to that contract.
Atkins has also told SEC staff to develop a crypto custody framework that could allow investment advisers, under certain conditions, to self-custody crypto or use state trust companies as custodians.
But the biggest immediate development arrived after the CLARITY Act vote.
Tokenized Stocks Just Became the First Major Post-CLARITY Move
On September 17, the SEC issued what Atkins called an “Innovation Exemption.”
The temporary exemption creates a pathway for certain tokenized U.S.-listed stocks to trade on blockchain-based venues without those platforms automatically being treated as traditional securities exchanges.
It also provides conditional relief from dealer registration requirements for certain liquidity providers.
The exemption comes with restrictions. Participating venues must meet access standards, comply with sanctions rules and trade qualifying tokenized stocks that preserve the economic and governance rights of the underlying shares. Issuers can also object to having their stock traded through these venues.
This is important because the new crypto rules are no longer theoretical. The SEC began putting parts of its onchain-market framework into practice just two days after the Senate vote.
What New Crypto Rules Is the CFTC Preparing?
The CFTC may be preparing something broader.
On September 17, the agency submitted a regulatory action titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to the White House Office of Information and Regulatory Affairs.
The filing carries RIN 3038-AF80 and is currently classified as a “prerule.” The actual regulatory text has not yet been released publicly, so the precise requirements are unknown.
That distinction matters. The filing does not mean the CFTC has already adopted a comprehensive crypto-market rulebook.
But it confirms that Selig’s promise to “ship” new crypto rules was followed almost immediately by a formal regulatory step.
Selig had previously asked CFTC staff to work on crypto-market structure, leveraged trading and ways for blockchain-based financial protocols to operate under U.S. law. The agency has also already moved to permit regulated Bitcoin perpetual contracts and has been developing frameworks around tokenized collateral.
The emerging division is relatively clear: the SEC is concentrating heavily on issuance, securities, custody and tokenization, while the CFTC is developing rules around commodity-market trading and derivatives.
Can Regulators Replace the CLARITY Act?
Not completely.
The SEC and CFTC can interpret and apply the laws Congress has already given them. They can write rules inside their existing jurisdictions, create exemptions and clarify how companies can comply.
What they cannot do is simply grant themselves every power that Congress would have provided through the CLARITY Act.
That is especially relevant to spot trading in crypto assets that are not securities. The CLARITY Act was designed to create a more explicit statutory framework for that market and give the CFTC broader authority over digital commodities.
Agency action also carries another weakness: durability.
A law passed by Congress remains in force until Congress changes it or courts invalidate it. Regulations, interpretations and exemptions can be revised by future commissions, challenged in court or reversed by another administration.
Even Atkins acknowledged this before the CLARITY Act vote. He described legislation as indispensable for creating “future-proofed” rules that would be more difficult for later regulators to unwind.
So the new crypto rules can fill parts of the regulatory gap. They cannot perfectly reproduce a statute.
Is Project Crypto Becoming the CLARITY Act’s Plan B?
In practice, it increasingly looks that way.
Project Crypto already produced a major interpretation of securities law, the SEC’s proposed crypto fundraising framework and now an exemption for tokenized stocks.
Meanwhile, the CFTC has moved crypto perpetuals onshore and has now sent a broader crypto-market regulatory initiative into White House review.
That does not mean Congress has become irrelevant. Both agencies continue to say legislation would provide stronger and more durable certainty.
But the immediate policy question has changed. Before September 15, the industry was waiting to see what rules Congress would pass. Now it is waiting to see how far Atkins and Selig can go without Congress.
What Happens Next for the New Crypto Rules?
The SEC’s Regulation Crypto Assets proposal remains in the rulemaking process, with public comments due October 20, 2026. Its tokenized-stock exemption is already a concrete regulatory action, although it is temporary and conditional.
The CFTC’s broader market initiative is earlier in the process. Its September 17 filing is still at the prerule and White House review stage, and its detailed text has not been published.
The CLARITY Act can theoretically return as well because the Senate preserved a route for reconsideration.
But for crypto companies, the important development is that the regulatory timetable is no longer entirely tied to Congress.
The new crypto rules are already arriving piece by piece — through SEC exemptions, formal proposals, joint interpretations and CFTC rulemaking.
The CLARITY Act was supposed to provide one comprehensive answer.
Instead, the United States may get its crypto framework one agency action at a time.
FAQ
Did the Senate reject the CLARITY Act?
The Senate failed to invoke cloture on September 15, 2026, by a 49-50 vote. The bill therefore did not advance, although a procedural motion allows it to potentially return.
What are Paul Atkins’s new crypto rules?
The SEC is developing rules and exemptions covering crypto fundraising, tokenized securities, custody and other blockchain-based market activities. It has also issued a temporary exemption allowing certain tokenized U.S. stocks to trade through qualifying blockchain venues.
What is Michael Selig doing at the CFTC?
Selig is advancing CFTC rulemaking covering crypto markets and transactions. On September 17, the agency submitted a broader crypto-market regulatory initiative for White House review, although its detailed text has not yet been published.
Can the SEC and CFTC regulate crypto without Congress?
Yes, but only within authority already granted to them by existing laws. They cannot simply recreate every provision or jurisdictional expansion that Congress could establish through legislation.
Is the CLARITY Act dead?
Not formally. The Senate preserved a procedural route for reconsideration. However, after the September vote, the SEC and CFTC have begun moving ahead with new crypto rules rather than waiting for another congressional vote.
