Clarity Bill Stalls as SEC and CFTC Push Virtual Asset Regulations

With the Clarity Act failing to advance through a U.S. Senate vote on Tuesday, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are continuing their efforts to establish virtual asset regulations. The bill fell short of the required 60 votes needed for advancement, receiving 49 in favor and 50 against.

SEC Chairman Gary Gensler and CFTC Chair Michael Seltzer announced on Wednesday that they would proceed with regulatory measures regardless of the Clarity Act's outcome. Seltzer stated, "We are ready to issue regulations for this new financial frontier and are fully committed to moving forward." The SEC previously proposed a separate rule set for certain virtual asset investment contracts on September 18, with public comment period closing October 20. The proposal includes up to $5 million (approximately 69 billion won) in annual exemptions and a $500,000 (about 69 billion won) one-time exemption.