The Digital Asset Market Clarity Act (H.R. 3633) failed a critical cloture vote in the US Senate on September 15. The bill received 49 votes in favor and 50 against, falling 11 votes short of the 60 required to advance. This outcome occurred despite the legislation previously passing the House with a 294-134 vote in 2025.
The implications of this legislative failure were discussed by former regulators at the Avalanche Summit on September 16. The panel featured former CFTC Chairs J. Christopher Giancarlo and Timothy Massad, alongside former SEC Commissioners Troy Paredes and Caroline Crenshaw.
The proposed act aimed to classify digital assets as either securities under SEC oversight or commodities under CFTC jurisdiction. The bill had undergone months of bipartisan negotiations and included additional provisions regarding ethics in digital asset handling to gain broader support.
Former CFTC Chair J. Christopher Giancarlo suggested that SEC Chairman Paul Atkins and CFTC Chairman Michael Selig could still advance cryptocurrency regulations using existing frameworks. While this approach bypasses Congress, experts noted that administrative guidance lacks the long-term durability of federal law.
