SEC, CFTC Move to Fill Crypto Regulatory Void After Clarity Act Fails Senate

The Securities and Exchange Commission and the Commodity Futures Trading Commission moved to fill the regulatory void left by the collapse of the Digital Asset Market Clarity Act, acting within days of the bill's failure in the Senate. Two days after the Clarity Act failed to advance, the SEC issued an order opening a temporary route for trading in certain tokenized stocks, a step toward round-the-clock financial markets. The CFTC sent its own crypto rulemaking proposal to the White House, with the Office of Management and Budget acknowledging the rules were under review. The Senate voted last week to block the Clarity Act, with a motion to invoke cloture failing 50 to 49, below the 60-vote threshold. All Democrats and four Republicans opposed the measure, citing an inadequate ethics provision on officials' crypto profits. Senate Banking Committee Chairman Tim Scott, R-S.C., urged regulators to provide guidance in the absence of legislation. The SEC and CFTC have coordinated through the "Project Crypto" initiative launched in July 2025.