SEC and CFTC Chairmen Say They Will Write Crypto Rules Without CLARITY Act

The heads of both U.S. market regulators said Wednesday they will write crypto rules without the CLARITY Act, a day after the Senate refused to take up the bill.

The SEC has a crypto asset offering rule in the Federal Register with comments open until Oct. 20 and two more proposals behind it. The CFTC has directed staff twice this year and sent no crypto market structure rule to the Register.

"The outcome of yesterday's Senate vote was unfortunate," CFTC Chairman Selig said in a statement posted at 10:35 a.m. ET. "President Trump promised to deliver a future-proof crypto asset regulatory market structure one way or the other, and we will help him get the job done using our existing statutory authorities. The U.S. is and will remain the crypto capital of the world. The CFTC is locked in and ready to ship its rules for the new frontier of finance."

SEC Chairman Atkins posted at 12:11 p.m. ET. "I have been unequivocal: with or without legislation, we will act decisively within the SEC's statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future," he said. "Stay tuned."

Atkins thanked "everyone who put so much effort into the CLARITY Act—across the Administration, Congress, investors, and innovators."

One Way Or The Other

The Senate rejected cloture on the motion to proceed to H.R. 3633 by 49-50 on Tuesday, 11 votes short of the 60 required. All 49 votes to proceed came from Republicans. The Defiant reported the result Tuesday, and the final text Monday.

Both chairmen had said this before the vote. Selig told the CFTC's Innovation Advisory Committee on Aug. 20 that "if CLARITY continues to stall because of Democratic obstruction, the CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets," according to his prepared remarks.

He said in the same speech that he had directed staff to explore rules letting current registrants and non-registrant crypto exchanges be designated as a type of designated contract market called a crypto asset market, and offer crypto trading on a leveraged or margined basis. He also directed staff to engage with onchain protocol developers.

"We're going to give CLARITY its breathing room for a vote," Selig said on Aug. 20. "But if the Democrats cannot support a bipartisan work product, which reflects compromises from both sides of the aisle, and ultimately send a fair version of the bill to the President's desk, then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry."

Atkins used the same formulation at the Solana Policy Institute's summit on Sept. 14, the evening before the vote. "With or without that legislation, this Administration will deliver for American investors and technological innovators," he said, according to his prepared remarks. "Promises were made, and they will be kept."

What Reached The Register

The SEC proposed Regulation Crypto Assets on Aug. 21. The rule would create two exemptions from Securities Act registration for crypto asset offerings — up to $5 million over four years, and up to $75 million in any 12 months — and a conditional safe harbor under which a crypto asset would be deemed not subject to an investment contract for the purposes of the securities definitions. Comments close Oct. 20.

Atkins named two more: the SEC's proposed transfer agent rules, and a custody proposal he has asked staff to develop that would let investment advisers self-custody crypto assets and use state trust companies as custodians. "As to self-custody, yes, because for too many assets a qualified third-party custodian simply does not exist yet," he said.

The CFTC's crypto work in 2026 has run through staff advisories and no-action letters. It issued FAQs on registrant activities involving crypto assets and blockchain on March 20, a no-action position for a self-custodial wallet software provider on March 17, and a joint statement with the SEC on the application of securities laws to crypto assets the same day. On May 29, staff confirmed the categorization of certain crypto perpetuals as foreign futures.

The agency has sent 18 proposed rules and requests for comment to the Federal Register since January, on prediction markets, event contract data, compute derivatives, 24/7 futures and perpetuals on energy commodities, swaps definitions, portfolio margining and commodity pool registration. The crypto market structure rules Selig described in January and August are not among them. His first speech as chairman, on Jan. 29, directed staff to develop rules on tokenized collateral, on leveraged retail crypto transactions under the "actual delivery" exception, and on a new DCM category.

Three Seats And One

The SEC has three sitting commissioners against five seats: Atkins, Hester Peirce and Mark Uyeda, per its commissioners page. Peirce's term expired in 2025, and commissioners may serve up to 18 months past expiry.

Selig is the only sitting commissioner at the CFTC. Its Chairman & Commissioners page lists him alone against five seats, leaving four vacancies. He was sworn in on Dec. 22, 2025 as the 16th chairman.

The Supreme Court overturned Humphrey's Executor on July 1, removing the for-cause protection that had shielded SEC and CFTC commissioners from removal by the president.

Any rule either agency adopts goes through notice and comment, and a later chairman can propose to rescind it through the same process. Repealing a statute takes another act of Congress.

Odds Barely Move

Polymarket priced the CLARITY Act being signed into law in 2026 at 6.6% on Wednesday afternoon, flat over 24 hours, on $21.3 million of cumulative volume. The market read 19.5% on Tuesday morning, before the vote.

Bitcoin traded at $75,883, unchanged over 24 hours, CoinGecko data shows. XRP fell 3.2% to $1.28. Ether was at $2,403, up 0.5%, Solana at $98.04, down 0.2%, and BNB at $716.42, up 0.2%.

The Federal Open Market Committee raised the target range for the federal funds rate by a quarter point to 3.75%-4.00% on Wednesday afternoon, on a 12-0 vote.