The crypto industry’s strategy in Washington over the past two years has officially reversed course. High hopes previously pinned on Congress passing comprehensive market structure legislation have now shifted to the desks of federal regulatory agencies. This pivot came after the Clarity Act bill failed in a US Senate procedural vote by a narrow 49-50 margin.
The Senate vote fell well short of the 60-vote threshold strictly required for the bill to advance. The Clarity Act was halted after getting bogged down by ethics provisions tied directly to Donald Trump’s crypto ventures. Reacting to the deadlock from the vote, Senator Cynthia Lummis declared the legislation dead for the 2026 calendar year.
Yet the closing of Congress’s doors has by no means brought crypto rule-making in the United States to a standstill. Within 48 hours of the failed Senate vote, three key US regulators simultaneously seized the initiative, stepping in to fill the regulatory void using their respective administrative authorities.
SEC Exemption and CFTC’s Swift Moves
On the exchange oversight front, SEC Chair Paul Atkins unveiled an “innovation exemption” regulatory framework. The administrative policy allows trading platforms to trade tokenized US equities directly on-chain, opening a pathway for market participants to operate without the burden of registering as national securities exchanges.
At the same time, the CFTC issued no-action guidance providing clarity for passive software developers. The guidance relieves crypto wallet developers from the requirement to register as introducing brokers when facilitating user access to regulated derivatives. Beyond issuing relief guidance, the CFTC also submitted a draft crypto market oversight framework to the White House.
The Fed Sets 100% Reserve Requirement
In contrast to the two agencies easing trading access, the Federal Reserve opted for a balance-sheet discipline approach for stablecoin issuers under the GENIUS Act mandate. The central bank proposed rules requiring stablecoin issuers to hold 100% liquid asset reserves to back every circulating token.
The Fed’s draft proposal also included strict operational risk capital requirements for issuers. The swift maneuvering by all three federal agencies over the past two days demonstrates that the oversight of the US digital asset industry continues at full throttle, even without new legislation from Congress.
Reported via Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
