SEC and CFTC move on crypto rules after Senate bill stalls

The Securities and Exchange Commission and the Commodity Futures Trading Commission have begun advancing cryptocurrency policies after the Senate blocked progress on the Clarity Act, according to CNBC reporting.

Two days after the bill failed to move forward, the SEC used its existing powers to create a temporary route for trading some tokenized stocks. The decision could bring financial markets closer to operating around the clock, as blockchain-based versions of traditional securities become easier to trade.

The CFTC also sent a crypto-related rulemaking proposal to the White House for review on the same day. The agency did not release the proposal’s contents, but the Office of Management and Budget confirmed that the submission was under consideration.

The moves show federal agencies preparing to act without waiting for Congress to pass a broad digital-assets law. The crypto industry had backed the Clarity Act, but its failure has increased pressure on regulators to provide rules for a market that financial firms are increasingly exploring.

Agencies prepare their own path

Summer Mersinger, chief executive of the Blockchain Association and a former CFTC commissioner, said uncertainty is discouraging traditional financial institutions from using crypto technology. In her view, clearer agency guidance could attract more investment, connect digital assets more closely with established finance and expand the sector.

Coinbase chief executive Brian Armstrong, an important industry advocate for the legislation, said after the Senate’s failed procedural vote on Sept. 15 that the sector could not continue relying solely on Congress. Senate Banking Committee Chairman Tim Scott, a South Carolina Republican, similarly urged federal agencies to establish workable standards while lawmakers remain divided.

CFTC Chair Michael Selig said the commission would help carry out President Donald Trump’s pledge to create a durable framework for crypto markets by relying on the authority already granted to the agency. The CFTC directed CNBC to a statement he issued on Sept. 16 when asked about its plans.

The SEC told CNBC that it was considering changes to rules governing the custody of assets belonging to investment-advisory clients and funds. The agency said those changes could address crypto assets as well.

Caroline Pham, who led the CFTC in an acting capacity from the beginning of Trump’s second term until December and now holds senior roles at MoonPay, said an agency-level alternative had been anticipated. Work undertaken by the SEC and CFTC since the start of the administration included preparations for continuing without a new act of Congress.

That work also includes Project Crypto, an initiative introduced in July 2025 to update securities regulation and bring the SEC’s and CFTC’s approaches into closer alignment. In August 2025, Pham said the CFTC would begin putting into practice recommendations from the President’s Working Group on Digital Asset Markets.

States challenge federal plans

The dispute is not limited to Washington’s financial regulators. State officials are also contesting how digital-asset oversight should be divided between federal and state governments.

A bipartisan group of state attorneys general wrote to the Senate Banking Committee on Sept. 14 asking lawmakers to reject the Clarity Act. They argued that the bill would weaken states’ ability to police securities markets and protect residents from fraudulent schemes.

The attorneys general urged the committee to preserve the states’ enforcement powers. Their position reflects a broader concern that a single federal framework could displace local safeguards, particularly in areas where state officials already investigate financial misconduct.

Aaron Klein, a senior fellow in economic studies at the Brookings Institution and former senior Senate Banking Committee staff member, told CNBC that national and international capital markets are better suited to federal oversight. He said states nevertheless have an important role in pursuing fraud and scams.

Klein argued that, while Congress has not established a comprehensive crypto framework, states should focus more forcefully on monitoring payment processors and prosecuting criminals. Mersinger took a different emphasis, saying state action generally follows harm rather than preventing it. She said stronger federal supervision could reduce the need for state attorneys general to intervene after customers have already been affected.

Legislation remains possible

The Senate’s stalled vote does not necessarily end the Clarity Act’s prospects. Senator Thom Tillis, a North Carolina Republican, changed his vote to oppose the bill, a step that allows him to seek reconsideration of the measure.

The midterm elections are now drawing lawmakers’ attention, creating further uncertainty about when Congress might return to the legislation. In the meantime, the SEC and CFTC are moving ahead under their existing statutory powers, while industry representatives, state officials and lawmakers continue to argue over who should set the boundaries for digital-asset markets.

For companies and investors, the agency actions may offer a route toward greater clarity without resolving the central political dispute. Federal officials can issue or revise rules within their existing authority, but the continuing conflict over state powers means the regulatory structure remains unsettled.