After CLARITY Act setback, U.S. regulators take further steps in crypto sector

U.S. crypto regulation is also shifting toward specific actions by individual agencies following the failure of the CLARITY Act proposal. On September 15, the Senate procedurally failed to advance the bill, but in the following days the SEC, CFTC and Federal Reserve (Fed) announced measures and proposals concerning tokenized stocks, regulated entities’ activities and payment stablecoins.

The Senate vote ended 49 to 50. Advancing the proposal required 60 votes. The CLARITY Act was intended to address the structure of the cryptoasset market, including the division of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, it has not been confirmed whether or when the Senate will return to the proposal or introduce a revised version.

U.S. crypto regulation through SEC, CFTC and Fed actions

On September 17, the SEC issued a temporary and conditional exemption called the Innovation Exemption. It permits limited trading of tokenized NMS stocks on designated onchain platforms. This is a time-limited relief measure with conditions, not a general authorization for all tokenized securities or trading platforms.

The SEC measure concerns tokenized NMS stocks, not cryptocurrencies generally. Its practical significance will depend on the exemption’s precise conditions and which platforms are able to use it.

On September 24, the CFTC published updated frequently asked questions (FAQ) concerning the activities of registered entities and registered markets related to cryptoassets and blockchain. The update provides interpretive material for entities already operating within the CFTC regulatory regime. By itself, however, it does not constitute a comprehensive law governing the entire crypto market structure.

On the same day, the Fed opened a comment period on two proposed rules for payment stablecoin issuers under its supervision. The proposals are based on the GENIUS Act. Since these are proposals, their final wording and effective date have not yet been determined. The next step will be evaluating the comments and potentially issuing final rules.

Legislation still has no replacement

The sequence of these announcements does not mean that U.S. agencies have replaced the CLARITY Act with their own unified set of rules. The SEC used a temporary conditional exemption, the CFTC updated its FAQ for regulated entities, and the Fed began a rulemaking process for stablecoins under its supervision. These are therefore different measures taken within the agencies’ existing authorities and under the GENIUS Act.

The division of authority between the SEC and CFTC was one of the central issues in the CLARITY Act proposal. Following the Senate vote on September 15, this broader legislative issue remains unresolved. The confirmed steps to date do not support concluding that a complete federal framework for all segments of the digital asset market has emerged.

What to watch next

• the Fed’s final rules for payment stablecoin issuers under its supervision following the comment period,
• the conditions and actual use of the SEC’s temporary Innovation Exemption for tokenized NMS stocks,
• the content of the CFTC’s updated FAQ and any potential additional formal rules or interpretations,
• whether a new procedure for the CLARITY Act or a revised legislative proposal appears in the Senate.

Verified and updated: 09/27/2026 06:20