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U.S. Crypto Rulemaking Shifts to Regulators Following CLARITY Act Senate Setback

Rulemaking authority in the United States is transitioning back to federal agencies after the CLARITY Act fell short of the required Senate votes.

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On September 15, the CLARITY Act failed to clear a procedural Senate vote requiring 60 votes, effectively stalling legislative efforts before Congress enters recess in early October. While the bill was not formally rejected, disputes over stablecoin rewards, investor protection, and political conflicts of interest have made near-term legislative approval unlikely.

Following the legislative stall, regulatory initiative has shifted to federal agencies operating under existing authority. Both SEC Chairman Paul Atkins and CFTC Chairman Michael Selig confirmed plans to advance administrative rules, following prior coordination under Project Crypto and the SEC's proposed Regulation Crypto Assets. Industry observers, including Ava Labs executive Charley Cooper, project that administrative rule frameworks will require at least six months to take shape.

Participants at the Avalanche Summit and industry legal analysts noted that agency regulations remain vulnerable to judicial challenges and policy shifts under future administrations. For Bitcoin, analysts at XWIN Japan suggest direct exposure to the regulatory delay remains limited due to its established commodity designation and active spot exchange-traded funds.

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