The Digital Asset Market Clarity Act, which aimed to establish the CFTC as the primary regulator for digital assets, failed to pass in the Senate on September 15. The bill was defeated with a vote of 49-50, as all Democrats and four Republican senators voted against it.
Opposition from Democrats was driven by concerns over ethics provisions. Lawmakers pointed to President Trump’s disclosure of over $1.4 billion in cryptocurrency earnings in 2025, including revenue from the TRUMP memecoin, as a reason to demand stricter guardrails.
The bill sought to resolve jurisdictional conflicts between the CFTC and the SEC by shifting oversight of most tokens to the CFTC. Following the vote, crypto-related stocks and tokens experienced a decline, and the legislation is considered dead for the current session.
With no federal framework in place, the SEC and CFTC will continue to regulate the industry through existing enforcement mechanisms. Critics argue this approach creates market uncertainty and places the United States at a disadvantage compared to the EU's MiCA framework.
