The US Senate rejected the CLARITY Act on September 15 with a 49-50 vote, failing to reach the threshold for further debate. This legislation aimed to establish a permanent jurisdictional framework for digital assets between the SEC and the CFTC.
Following the bill's failure, the SEC introduced a five-year conditional innovation exemption on September 17-18. This allows regulated venues to trade tokenized NMS stocks via automated market makers without full registration.
The CFTC simultaneously expanded its no-action relief for passive software providers facilitating access to regulated derivatives markets. This measure provides temporary legal protection but lacks the formal status of statutory law.
TD Cowen analysts warn that agency actions are provisional and less durable than legislation. Unlike statutes, these rules can be rescinded by new commission leadership, political shifts, or federal court challenges.
JPMorgan echoed these concerns, noting that agency-level decisions cannot replace the certainty of federal law. Market participants are advised to view current regulatory progress as a temporary framework rather than a permanent solution.
