Crypto Industry Looks to US Regulators Following CLARITY Act Setback

Senate Cloture Vote Fails, Industry Reacts

On Tuesday, the US Senate failed to invoke cloture to advance the CLARITY Act, with a close vote tally of 49 in favor and 50 against, falling short of the 60 votes necessary. This legislation aimed to establish a clear regulatory framework for digital assets. Crypto industry leaders expressed disappointment over the outcome but highlighted optimism toward efforts from regulators including the Securities and Exchange Commission (SEC), led by Chair Paul Atkins, and the Commodity Futures Trading Commission (CFTC), chaired by Gary Gensler, to fill the current regulatory void.

Ripple CEO Brad Garlinghouse shared on X that there remains cause for optimism in US crypto regulation, as these agencies continue working on rulemaking. At the Solana Policy Institute Summit held the day before, SEC Chair Atkins reiterated his commitment to providing clearer crypto regulatory guidance, with or without Congressional backing.

However, NEAR’s Chief Legal Officer Abhishek Vaidyanathan voiced concerns that rejecting the bill leaves firms wholly dependent on agency guidance and shifting administrative discretion. He warned this could cause prolonged uncertainty and increased legal complexity for companies budgeting through 2027 and beyond. Bitget Wallet’s COO Alvin Kan described Tuesday’s bill defeat as exacerbating regulatory ambiguity over how securities, commodities, and money transmission rules apply across various crypto products.

Prospects for Renewed Vote and Legislative Outlook

Following the cloture vote failure, Senator Thom Tillis moved to reconsider the vote, signaling a possible fresh attempt. Industry opinion remains divided on whether the CLARITY Act can be passed before the current Congressional session ends in January.

1inch Chief Legal Officer Orest Gavryliak characterized the vote as a delay rather than a final rejection, emphasizing that legislation of this scale rarely proceeds in a linear fashion and that cloture votes can be reintroduced.

In contrast, Vaidyanathan expressed skepticism toward immediate prospects, suggesting the next Congress may be the more realistic opportunity to address crypto market regulations. He noted that the House of Representatives has canceled weeks of session in late September and the Senate will begin its state work period starting October 5 ahead of the November 3 elections, limiting legislative windows.

Meanwhile, prediction markets on Polymarket dropped the likelihood of the CLARITY Act becoming law in 2026 to 5%—the lowest level since the market opened in January.