Former CFTC Chair Says SEC and CFTC Can Advance Crypto Rules After CLARITY Vote

• The Former CFTC says SEC and CFTC efforts may still proceed following the CLARITY Act defeat.
• Following the Senate’s 49-50 cloture vote, the focus now shifts to agency rulemaking and future congressional efforts.

According to the former chairman of the CFTC, J. Christopher Giancarlo, the failure of the Senate’s CLARITY Act does not mean that innovation in crypto will be stopped in the United States. In an interview with Eleanor Terrett, Giancarlo mentioned that the regulators will still work on creating frameworks for digital assets using their existing powers. The former chairman specifically named Paul Atkins, the chairman of the SEC, and Michael Selig, the chairman of the CFTC.

Shift in Focus Post-Senate Vote to Regulators

On September 15, the Senate voted 49-50 against cloture, failing to reach the 60-vote threshold. Four Republicans voted alongside Democrats in opposition, while Senator Thom Tillis voted no as a procedural move for reconsideration purposes.

The CLARITY Act aimed at allocating the regulatory responsibilities regarding digital assets between the SEC and CFTC. The act also contained registration requirements for exchanges, brokers, and dealers. It comprised provisions pertaining to ethics limitations and Treasury powers related to the outflows of deposits by stablecoins. The Republicans introduced a new version of the bill prior to voting, stating that it was the final version. They claimed that the bill included 126 modifications suggested by the Democrats.