Crypto industry turns to US regulators after CLARITY setback

The CLARITY Act, a major crypto bill aimed at establishing a regulatory framework for digital assets, failed to advance in the US Senate on Tuesday. Senator Thom Tillis moved to reconsider the failed cloture vote, suggesting the possibility of reviving the legislation. However, crypto industry leaders are divided on whether Congress has enough time left to pass the bill before its term ends in January.

In the wake of the setback, industry executives are looking to US financial regulators, specifically the Securities and Exchange Commission and Commodity Futures Trading Commission, to fill the regulatory gap. Ripple CEO Brad Garlinghouse expressed optimism about the potential for clearer rules from the SEC and CFTC. However, NEAR chief legal officer Abhishek Vaidyanathan cautioned that rejecting the bill leaves firms dependent on agency guidance and administrative discretion, potentially leading to prolonged delays and increased legal work.

Bitget Wallet COO Alvin Kan highlighted the continued uncertainty over how securities, commodities, and money-transmission rules apply across different products. The CLARITY Act may face another cloture vote after Tillis moves to reconsider the failed attempt. Industry executives remain divided on whether the legislation can be passed before the term ends.

Polymarket odds of the CLARITY Act being signed into law in 2026 dropped to 5%, the lowest probability since the market began in January.