U.S. regulators rush to write crypto rules after Clarity Act stalls in Senate

U.S. regulators are moving to build crypto rules after the Clarity Act stalled in the Senate. The SEC and CFTC began acting two days after the bill failed to advance. The SEC expanded its crypto rulebook under its existing authority. The SEC issued an order creating a temporary pathway for trading certain tokenized stocks. The CFTC submitted a crypto rulemaking proposal to the White House for review. The proposal's details were not made public. The Office of Management and Budget confirmed that the rules were pending review. The crypto industry supported the Clarity Act and is seeking regulatory guidelines. Blockchain Association CEO Summer Mersinger said regulatory certainty could support investment and integration into traditional finance. Coinbase CEO Brian Armstrong said Congress and the Senate could not be awaited. Senate Banking Committee Chairman Tim Scott called for clear digital asset rules from federal agencies until Congress legislates. CFTC Chair Michael Selig said the agency would help President Trump deliver a crypto market structure using its existing statutory authorities. An SEC spokesperson said the agency would consider modernizing custody rules for investment adviser client assets and fund assets to address crypto assets. Caroline Pham said an agency-level plan B had always been possible. The agencies' work includes Project Crypto, which was introduced in July 2025 to modernize securities regulations and align SEC and CFTC crypto rules. Pham announced in August 2025 that the CFTC would begin implementing recommendations from the President's Working Group on Digital Asset Markets. In a Sept. 14 letter, state attorneys general urged the Senate Banking Committee to oppose the Clarity Act. The attorneys general argued that the bill would displace states' ability to regulate securities markets. Aaron Klein said capital market regulation should be handled at the federal level. Klein said states have substantial authority to stop fraud and scams. Klein also said states should monitor payment processing and prosecute criminals when no federal crypto framework exists. Mersinger said state enforcement occurs after a crime has been committed. She called for federal oversight to prevent situations in which state attorneys general must sue after people are harmed. Sen. Thom Tillis revised his vote to oppose the bill. The change allowed him to bring a motion to reconsider the legislation in the Senate.