Crypto16 September, 20263 min read
Clarity Act Stalls in U.S. Senate as SEC and CFTC Push Crypto Rulemaking Forward
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Senate cloture on Clarity Act failed 49-50, blocking debate on crypto market structure. Crypto stocks tumbled after failure, with Coinbase and Circle among the biggest declines.
Clarity Act Fails
The Clarity Act stalled in the U.S. Senate when the bill failed a procedural vote on Sept. 15, drawing 49 votes in favor and 50 against, short of the 60 needed to advance.
Paul McCaffery, head of digital assets at investment bank KBW, said, "The Clarity Act’s setback doesn’t change the trajectory," and he argued the SEC and CFTC are already moving proactively to provide regulatory certainty.
The SEC approved a temporary "Innovation Exemption" allowing limited trading of tokenized U.S. stocks on certain onchain venues two days after the Senate vote, and the SEC also proposed a new rule on Oct. 1 to clarify how investment firms can handle and keep customer crypto assets.
The CFTC continued removing regulatory barriers, including providing relief to certain software providers and updating guidance around tokenized investments and blockchain-based recordkeeping.
CryptoRank Research put disclosed deal value in the digital asset sector at a record $9.7 billion in the first half of 2026, up 44% from a year earlier, while the number of announced acquisitions fell 8% year over year to 87.
Regulators Fill the Void
The Securities and Exchange Commission issued an order creating a temporary pathway for trading certain tokenized stocks two days after the Clarity Act failed to advance in the Senate.
Summer Mersinger, CEO of the Blockchain Association and a former CFTC commissioner, told CNBC, "When you're thinking about traditional finance entering in and using some of this technology, they're being held back right now because there is this regulatory uncertainty."
Coinbase CEO Brian Armstrong said after the failed Senate procedural vote on Sept. 15, "At this point, I don't think we can wait on Congress and the Senate."
The Commodity Futures Trading Commission submitted a crypto rulemaking proposal to the White House for review, and the Office of Management and Budget confirmed the rules were pending review.
Caroline Pham, CEO of MoonPay Institutional and chief legal officer and chief administrative officer for MoonPay, said, "You have to have a contingency plan," describing how the SEC and CFTC took that into account with the work they had been doing since Trump's second term began.
Industry Leadership Shifts
The Blockchain Association announced that Christine Smith would return to lead the organization as interim chief executive officer as of October 17, 2026, succeeding Summer Mersinger. The association said Mersinger’s last day as CEO would be October 16, and it said she would remain an advisor through the end of the year to ensure an orderly transition of duties. The Blockchain Association said Smith will retain her current position at the Solana Policy Institute while taking on her temporary responsibilities at the blockchain association, and it said Smith currently serves as chair of the board of the Blockchain Association.
The leadership transition coincided with the stalemate over the “Clear” bill, after the Senate failed to move the bill to the next stage on September 15, with the vote tally showing 50 in favor and 49 against. The Blockchain Association said it held more than 300 meetings with congressional staff and U.S. agencies during 2026 as part of its activities related to digital asset policies, while it continued engaging with members of both parties and regulatory bodies after the September result.