Crypto industry leaders are looking to US financial regulators to fill the regulatory gap after a major crypto bill establishing a regulatory framework for digital assets stalled in the Senate on Tuesday.
The Senate voted 49-50 on a motion to invoke cloture and advance the CLARITY Act, short of the 60 votes needed as Democrats raised concerns over US President Donald Trump’s crypto investments. Industry executives said the result was a disappointment, but pointed to potential rulemaking from the US Securities and Exchange Commission and Commodity Futures Trading Commission as the next best source of regulatory clarity.
Speaking to Cointelegraph’s Chain Reaction before Tuesday’s vote, Fireblocks US policy director Jessica Martinez said the company would continue engaging with regulators if the legislation failed.
“We’re going to continue working with the regulators, the SEC and the CFTC specifically,” Martinez said.
Meanwhile, Ripple CEO Brad Garlinghouse on Tuesday, following the vote, said that US regulators will “continue to work hard to issue rules to fill the legislative gap,” as a reason to remain optimistic.
Their belief comes as SEC Chair Paul Atkins reiterated his commitment to deliver clearer crypto rules at the Solana Policy Institute Summit on Monday. However, there’s concern the solution won’t give long-term investors the same confidence that legislation would provide.
“Rejecting the bill leaves firms completely dependent on agency guidance and ongoing administrative discretion,” added NEAR chief legal officer Abhishek Vaidyanathan.
“Firms setting their 2027 budgets would face another prolonged delay, forcing them back into case-by-case judgments and repeated legal work while counterparties continue to price in regulatory uncertainty,” he added.
Bitget Wallet chief operating officer Alvin Kan told Cointelegraph that failure to advance the bill on Tuesday brings “continued uncertainty over how securities, commodities and money-transmission rules apply across different products.”
Another attempt for CLARITY
The CLARITY Act could face another cloture vote after Senator Thom Tillis moved to reconsider Tuesday’s failed attempt. Industry executives remain divided over how long the latest setback will stall the bill’s progress.
“Today’s result is a delay, not a verdict. Legislation of this scale rarely moves in a straight line, and a cloture vote can be brought again,” 1inch chief legal officer Orest Gavryliak said in comments shared with Cointelegraph.
Related: Crypto stocks slide after CLARITY Act fails to advance in Senate
Vaidyanathan was less optimistic about any immediate prospects, saying the next Congress was the likely next opportunity to address crypto market structure.
“Now that cloture failed, the next Congress is the likely next opportunity to address crypto market structure. The House has already canceled its weeks of September 21 and 28, and the Senate’s state work period begins October 5 ahead of the November 3 election.”
Polymarket odds of the CLARITY Act being signed into law in 2026 fell to 5% on Tuesday, the lowest probability since the market was opened in January.
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