Former Democratic congressman Tim Ryan says the CLARITY Act could still move forward this year if lawmakers return to negotiations and resolve the issues that stopped the bill from advancing in the Senate.
The Senate voted 49–50 on Sep. 15 against a procedural motion to begin debate on the bill. This was not a final vote on the CLARITY Act itself. The motion needed 60 votes to move forward.
Ryan said the main disagreements are still around ethics, consumer protection, illicit finance and rewards connected to stablecoins. He believes both parties still support having clearer crypto rules, but lawmakers have not yet agreed on the details.
“I think there’s still a path,” Ryan said. He added that a deal could be possible during the lame-duck session later this year if both sides are willing to make compromises.
Seven Senate Democrats who voted against the procedural motion also said the vote was not the end of the process and that bipartisan discussions could continue.
The CLARITY Act would create federal rules for digital asset markets and clarify the roles of the SEC and CFTC. Under the proposed framework, certain digital commodities and their spot markets would mainly fall under CFTC oversight, while securities-related activity would remain under the SEC. The bill would also establish registration rules for crypto exchanges and other market participants.
Ryan said clear rules are important for companies deciding whether to hire workers and invest money in the U.S. He argued that businesses need rules that remain stable even when a new administration takes office.
Ryan also said recent actions from the SEC and CFTC can provide some help, but they cannot replace legislation.
The SEC recently gave temporary conditional relief for certain platforms involved in trading tokenized U.S. stocks. The relief includes conditions covering investor rights, trading limits and situations where trading in the underlying stock is halted.
The CFTC also issued a no-action position for certain software providers, allowing them to avoid some broker-registration requirements as long as they meet specific conditions. The agency also submitted a proposed framework for crypto markets to the White House for review.
Ryan said these regulatory actions can help the industry, but companies making long-term investments need more permanent certainty.
The classification of major cryptocurrencies also remains part of the discussion. Ryan mentioned Bitcoin, XRP and Solana as assets that have received more regulatory clarity, but said Congress still needs to establish consistent rules so businesses and consumers do not have to rely on individual court cases to determine how digital assets should be treated.
The SEC and CFTC have provided guidance on certain digital assets, but questions can still arise depending on how an asset is issued, sold or traded. Ryan’s position is that clearer congressional rules would give crypto companies and users a more consistent framework to follow.
