Former U.S. Congressman Tim Ryan believes the CLARITY Act could still pass this year if lawmakers resolve the disagreements that blocked its progress in the Senate on September 15.
Ryan, a Shyft Policy Board member, told crypto.news that both parties still have a chance to reach an agreement if they return to negotiations and are willing to compromise.
The Senate vote ended 49–50, with one senator not voting. The motion needed 60 votes to move forward, but the result was a procedural setback rather than a final vote on whether to pass the legislation.
Ryan said the main disagreements involve ethics, consumer protection, illegal financial activity and rewards offered on stablecoins. He believes bipartisan support for clearer crypto rules remains, even though lawmakers have not agreed on how those rules should work.
“I think there’s still a path,” Ryan said, adding that the concerns surrounding ethics, consumer protection, illicit finance and stablecoin rewards must be addressed.
He believes lawmakers could reach a deal during the lame-duck session later this year, when Congress meets after the November elections and before the next congressional session begins.
Lawmakers could restart CLARITY Act negotiations
Ryan’s comments came after seven Senate Democrats who voted against moving the bill forward said the vote would not end their efforts. On September 16, the senators said they planned to continue bipartisan discussions over the legislation.
The distinction matters because senators did not vote on the bill’s final passage. They voted on whether to begin considering it, leaving room for further negotiations over its provisions.
The CLARITY Act aims to establish a federal framework for digital asset markets and clarify the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Under the proposed framework, qualifying digital commodities and their spot markets would fall mainly under CFTC oversight, while securities-related activities would remain under the SEC. The legislation would also establish registration requirements for crypto exchanges and other market participants.
Ryan said the lack of consistent rules creates problems for companies deciding where to invest, hire workers and build their businesses. He believes the United States needs a framework that can remain in place across changes in presidential administrations.
SEC and CFTC actions cannot replace legislation
While the CLARITY Act remains stalled, the SEC and CFTC have continued using their existing powers to provide guidance and address specific issues in the crypto industry.
Ryan said these actions can help businesses in the short term, but he believes legislation is necessary to provide lasting certainty for companies and consumers.
“Agency action helps, but companies making long-term investments need long-term certainty,” he said.
On September 17, the SEC issued temporary, conditional relief for certain platforms trading tokenized U.S.-listed stocks through permissioned automated market makers and liquidity pools. The exemption lasts five years after publication and includes conditions intended to preserve token holders’ rights to those of equivalent traditional shares.
The SEC also imposed trading limits, required trading to stop when the underlying stock is halted and requested public feedback on the arrangement.
The decision addresses specific tokenized securities activities. It does not establish a complete regulatory framework for every type of cryptocurrency.
The CFTC’s Market Participants Division also issued a no-action position for certain passive software providers on September 17. Under specified conditions, the division said it would not recommend enforcement against qualifying providers for failing to register as introducing brokers or as associated persons of introducing brokers when their software helps users trade through registered derivatives firms and markets.
That position applies only to the activities covered by the letter and does not change the underlying registration laws.
The CFTC also submitted a proposed framework for crypto transactions and markets for White House review on September 17. The proposal must return to the commission for a vote before it can be published for public comment.
These developments show that regulators can make changes within their existing authority, but the broader questions surrounding crypto market oversight remain part of the legislative debate.
Bitcoin, XRP and Solana remain part of the debate
Ryan also pointed to ongoing questions about how different digital assets should be classified under U.S. law.
He identified Bitcoin, XRP and Solana as examples of assets for which regulators have provided greater clarity. However, he argued that Congress still needs to establish consistent rules so businesses and consumers do not have to rely on individual court cases to determine how assets should be treated.
On March 17, the SEC issued an interpretation alongside CFTC guidance that included Bitcoin, XRP and Solana among its examples of digital commodities. The assessment was based on the agencies’ understanding of the assets’ characteristics, terms and functions.
The interpretation also explained that an asset that is not itself a security can still be involved in a transaction subject to securities laws. The SEC said its views could change as it receives public feedback.
For crypto exchanges, investors and token issuers, the distinction affects how assets can be traded and which regulatory requirements apply.
Ryan said the industry needs a framework that businesses can follow consistently rather than facing uncertainty over how individual assets and transactions will be treated.
A deal remains possible before the end of the year
The failed September vote has delayed the CLARITY Act, but it has not formally ended efforts to pass it.
Lawmakers still need to resolve disagreements over stablecoin rewards, consumer protection, ethics and illicit finance before the bill can gain enough support. The possible lame-duck session offers another opportunity for negotiations, although passage is not guaranteed.
In the meantime, SEC and CFTC actions may provide limited relief or guidance for specific activities. Ryan’s position is that these measures can help the industry move forward, but only legislation can establish a broader framework designed to last beyond the next change in administration.
