Grayscale Says Senate Failure to Advance CLARITY Act Won’t Stop U.S. Crypto Policy Progress

Grayscale has responded to the U.S. Senate’s failure to advance the Digital Asset Market Clarity Act, saying the setback will not stop progress toward clearer cryptocurrency regulations.

The crypto industry experienced a setback on September 15 after the U.S. Senate failed to advance the CLARITY Act in a procedural vote. The measure needed 60 votes to overcome a filibuster but received only 49 votes in favor and 50 against. Notably, four Republicans joined Democrats in voting against advancing the legislation.

Grayscale Reacts 

Following the vote, Grayscale acknowledged that the outcome was not what it had hoped for. However, the company pointed to the ongoing work of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) as evidence that U.S. crypto policy continues to develop.

“The industry continues to make remarkable progress through the ongoing work of regulators like the SEC and CFTC,” Grayscale remarked.

Moreover, Grayscale reaffirmed its commitment to working with policymakers and regulators to establish clearer and more comprehensive rules for digital assets. The asset manager said it expects U.S. crypto policy to continue maturing despite the legislative setback.

SEC and CFTC Continue Regulatory Efforts

Meanwhile, the SEC and CFTC have taken several steps toward developing a clearer regulatory framework for digital assets.

In March, the two agencies issued a joint interpretation addressing how federal securities laws apply to certain crypto assets and transactions. The framework established categories including digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. During the exercise, several crypto assets, including XRP, were classified as digital commodities. 

The CFTC said the interpretation was designed to provide greater clarity on how crypto assets should be treated under the agencies’ respective laws.

However, agency action differs from legislation passed by Congress. The joint interpretation represents regulatory guidance rather than a comprehensive statute, so its application can change with future regulatory actions and court decisions.

The SEC also advanced crypto-specific rulemaking in August through its proposed Regulation Crypto Assets framework. The proposal includes a $5 million exemption over four years and a separate exemption for qualifying offerings of up to $75 million within 12 months.

Additionally, the proposal would establish a conditional safe harbor from the definition of an investment contract once qualifying managerial activities have permanently ceased.

Although Grayscale highlighted the regulatory progress made by the SEC and CFTC, the Senate vote underscores that the industry has yet to secure the broader statutory framework envisioned by the CLARITY Act.