The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are moving to independently advance rules for the digital asset market.
This follows the U.S. Senate’s September 15 vote to block the key Digital Asset Market Clarity Act (H.R. 3633). The bill fell short, with a 49–50 vote, amid disagreements over government officials’ crypto holdings and stablecoin regulation.
Lawmakers’ failure to pass the act left the industry without clear guidance ahead of the November midterm elections. In these circumstances, regulators have signaled that they intend to fill the legal vacuum using the administrative resources available to them.
Without waiting for a compromise on Capitol Hill, the agencies have stepped up their own rulemaking efforts:
- SEC initiatives: The commission is advancing a proposed Regulation Crypto Assets, which would introduce flexible registration exemptions for crypto startups, with limits of up to $5 million and $75 million. Public hearings on the proposal will continue through October 20. The shift in direction is also reflected within the agency: Commissioner Hester Peirce publicly called the previous hard-line approaches “infantilizing investors.”
- CFTC plan: Commission Chairman Michael Selig confirmed that the agency is using its current authority to shape the market structure. The agency has already updated its rules for accounting for tokenized assets and sent a comprehensive regulatory proposal to the White House for approval.
- Project Crypto: The regulators’ actions are being coordinated under an interagency agreement that divides digital assets into five basic categories, from digital commodities to securities.
Business turns to lobbying as coins approach local highs
The bill’s failure prompted leadership changes at major industry groups. Blockchain Association CEO Summer Mersinger announced that she would leave her post on October 16; Kristin Smith will succeed her.
At the same time, major crypto firms are stepping up their direct influence on the electoral process. Coinbase CEO Brian Armstrong and the Stand With Crypto alliance have launched a voter mobilization campaign, presenting fintech development as a bipartisan national security issue.
Financial markets, meanwhile, have responded to the regulatory shifts with measured optimism. Against the backdrop of news that the SEC and CFTC are ready to take charge, Bitcoin has remained stable, trading in the $84,000–$86,000 range.
Major altcoins, including XRP and NEAR, are also holding near local price highs. Holders are counting on agency guidance to provide the market with the legal clarity it needs more quickly and smoothly than the stalled Congress can.
