The Digital Asset Market Clarity Act (CLARITY Act) failed to advance in the Senate on September 15, with a cloture vote of 49-50. The bill required 60 votes to proceed. JPMorgan analysts, led by Kenneth Worthington, noted that the legislation had previously cleared the House and Senate committees.
The bill aimed to define regulatory jurisdiction by assigning authority over digital commodities to the CFTC and investment contracts to the SEC. Disagreements regarding ethics provisions, stablecoin yield rules, and anti-money laundering requirements prevented the bill from passing.
JPMorgan analysts warned that the industry now faces reliance on agency rulemaking by the SEC and CFTC. Unlike legislative statutes, these rules are susceptible to being rewritten or scrapped by future administrations. Prediction market odds for the bill passing before the end of 2026 have fallen to approximately 6.6%.
The bank highlighted that agency rules face additional risks from legal challenges under the Administrative Procedure Act. Furthermore, internal agency deliberations lack the transparency of public Senate floor debates. JPMorgan continues to advocate for clear consumer protections and stablecoin requirements.
