SEC and CFTC advance crypto rules as Congress stalls Clarity Act

What happened

The Securities and Exchange Commission and the Commodity Futures Trading Commission are moving to advance digital asset rules on their own. The push follows the U.S. Senate's September 15 vote to block the Digital Asset Market Clarity Act (H.R. 3633), which fell short in a 49, 50 vote amid disagreements over government officials' crypto holdings and stablecoin regulation.

The agencies have stepped up their own rulemaking instead of waiting for a deal on Capitol Hill. The SEC issued staff guidance on how federal law applies to investment contracts, and the CFTC moved forward on rules for blockchain recordkeeping by the companies it oversees.

Leadership at both agencies is also changing. Hester Peirce, an SEC commissioner for eight years, is set to leave on October 2, which leaves Chair Paul Atkins and Commissioner Mark Uyeda as the only two members of a panel usually meant to hold five seats. It will be only the second time in US history that the SEC has run with two commissioners.

At the CFTC, a single commissioner, Chair Michael Selig, has run the agency since December 2025, after acting chair Caroline Pham left. A White House official said Trump plans to nominate members to both agencies "in the near future," and CNBC reported on September 4 that officials were reviewing four possible candidates for CFTC seats.

Why it matters

Lawmakers' failure to pass the act left the industry without clear guidance ahead of the November midterm elections. Regulators have signaled that they intend to fill the legal vacuum using the administrative resources available to them, so the rules will come from agencies rather than Congress.

Markets held steady through the news. Bitcoin stayed stable and traded in the $84,000, $86,000 range, while major altcoins including XRP and NEAR held near local price highs.

Industry groups and companies are adjusting at the same time. Blockchain Association CEO Summer Mersinger said she would leave her post on October 16, with Kristin Smith to succeed her, and Coinbase CEO Brian Armstrong and the Stand With Crypto alliance launched a voter mobilization campaign.

Without the law, the split of duties between the two agencies stays unresolved. The bill was expected to give the CFTC more authority over crypto oversight in areas currently handled by the SEC, and it did not pass despite Republicans controlling the Senate.

What is still unclear

• No timeline is set for filling the open regulator seats. A White House official said Trump plans to nominate members to both agencies "in the near future," and CNBC reported on September 4 that officials were reviewing four possible candidates for CFTC seats, without sharing names.
• It is not clear how the SEC and the CFTC will divide crypto oversight without new law, since the bill was expected to give the CFTC more authority in areas currently handled by the SEC, and the agencies are now advancing rules on their own.

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