The CLARITY Act Failed — So Who Regulates Crypto Now?

The CLARITY Act was supposed to answer one of crypto’s biggest questions: which regulator controls which part of the market?

Instead, the bill stalled in the Senate on Sept. 15 after failing to clear the 60-vote threshold needed to advance. The result leaves the U.S. without the broad market-structure framework the legislation was designed to create.

That does not mean crypto is suddenly unregulated.

The SEC and CFTC were already coordinating on digital assets before the vote. In March, the two agencies signed an official SEC-CFTC memorandum of understanding aimed at clarifying product definitions, modernizing trading rules and developing a more coordinated crypto framework.

SEC vs. CFTC Is Still the Main Divide

The SEC remains responsible for applying federal securities laws when a crypto asset, token offering or transaction falls within securities law.

Earlier this year, the SEC issued new guidance covering areas including staking, mining, airdrops and when a non-security crypto asset can become part of an investment contract. The CFTC joined that interpretation and said it would administer the Commodity Exchange Act consistently with it.

The CFTC, meanwhile, already oversees crypto futures, options and other derivatives.