CLARITY Act Failed. Now SEC and CFTC Could Rewrite U.S. Crypto Rules - Bitcoin Foundation

The CLARITY Act, which sought to establish a clear regulatory framework for digital assets, has failed to advance. With legislative clarity now off the table, attention shifts to the two agencies that already hold significant authority over crypto markets: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

For market participants, this means the rules governing digital assets may increasingly be shaped through agency rulemaking, enforcement actions, and formal guidance rather than through Congress. The SEC has generally asserted jurisdiction over assets it deems securities, while the CFTC has taken a leading role in regulating crypto derivatives and certain spot markets. How each agency defines its scope — and where those definitions overlap — could affect token listings, exchange operations, and compliance costs across the industry.

What to watch: formal rule proposals, no-action letters, and any joint statements from the two agencies. Court rulings in ongoing enforcement cases may also influence how far each regulator can extend its reach. For now, the practical direction of U.S. crypto policy rests less with lawmakers and more with the regulators themselves.