CFTC and SEC Advance Crypto Regulatory Frameworks After Clarity Act Fails in Senate

Federal regulators have rapidly shifted to administrative rulemaking for digital assets following the U.S. Senate's failure to advance the Clarity Act in a 49-50 vote. CFTC Chair Mike Selig stated the agency has sufficient authority to regulate crypto derivatives independently, filing prerules under RIN 3038-AF80 after approving KalshiEX's Bitcoin-linked BTCPERP contract. Concurrently, the SEC issued a five-year Innovation Exemption for tokenized stocks, and the Federal Reserve proposed strict reserve requirements for stablecoins. Amid the regulatory actions, Bitcoin pulled back 3% to $83,406, while spot Bitcoin ETFs drew $347 million in daily net inflows.