Crypto Market Structure Bill: SEC and CFTC Rules

The U.S. crypto market structure bill, commonly associated with the CLARITY Act, seeks to establish a federal regulatory framework dividing oversight of digital assets between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). It matters to investors, crypto firms, developers, banks and financial institutions because the legislation could reshape asset classification, exchange registration and consumer protection requirements.

Key Takeaways

• The CLARITY Act is pending legislation, not federal law. The House passed H.R. 3633 in 2025, and the Senate Banking Committee advanced a revised version 15–9 on May 14, 2026.

• On September 15, 2026, the Senate failed to invoke cloture on the bill’s motion to proceed by 49–50, leaving the crypto market structure legislation stalled but eligible for reconsideration.

• The proposed regulatory framework would preserve SEC authority over securities and investment-contract transactions while expanding CFTC oversight of digital commodities and related spot-market intermediaries.

• Supporters argue that clearer rules could reduce regulatory uncertainty and compliance costs; critics argue that some exemptions could weaken existing investor, ethics and financial-system safeguards.

• The GENIUS Act is separate stablecoin legislation. It became law on July 18, 2025, not November 17, 2025, and established federal rules for permitted payment stablecoin issuers.

Current Status of the Crypto Market Structure Bill

The CLARITY Act remains pending in Congress. After the House of Representatives passed the legislation, the Senate Banking Committee approved its version in May 2026. A September 15 Senate procedural vote then failed to reach the 60 votes required to advance consideration.

The failed vote does not itself permanently defeat the bill. Senator Thom Tillis voted against cloture procedurally and moved to reconsider, leaving a possible route for future Senate consideration.

This represents an important update to earlier descriptions of the CLARITY Act and SEC-CFTC jurisdiction, which tracked the legislation before the September floor vote.

How Would the SEC and CFTC Divide Crypto Oversight?

The legislation aims to replace overlapping crypto regulation with clearer statutory categories and registration pathways.

Under the House framework, a digital commodity is generally a crypto asset whose value is linked to the operation and use of its blockchain network. Securities, derivatives and permitted payment stablecoins are excluded from that definition. A digital commodity may nevertheless be sold through an investment contract, in which case securities laws can apply to the transaction. The SEC has more experience with retail markets than the CFTC.

That distinction is central to the crypto market structure debate because it could expand CFTC authority over spot digital commodity markets while narrowing situations in which the SEC regulates the underlying crypto asset.

The SEC and CFTC have already moved toward a coordinated token taxonomy. Their March 2026 interpretation describes categories including digital commodities, digital collectibles, digital tools, stablecoins and digital securities.

What Rules Would Apply to Crypto Firms?

The proposed market structure legislation creates registration and compliance pathways for crypto exchanges, brokers, dealers and other intermediaries handling regulated digital assets.

The framework addresses disclosure, customer assets, market manipulation, conflicts of interest, anti-fraud rules and illicit finance controls. Clear statutory definitions could give developers and firms greater certainty when deciding whether fundraising, trading or other transactions fall under securities or commodities regulation.

SEC Chair Paul Atkins has argued that congressional legislation remains important for creating durable crypto rules even as the agency develops its own regulations. In August 2026, the Securities and Exchange Commission said market structure legislation remained necessary alongside agency rulemaking.

Investor Protection, DeFi and Ethics Disputes

Investor protection is one of the most contested parts of the bill.

The Senate Banking Committee majority argues that the legislation adds consumer protections, enforcement tools and safeguards against fraud and illicit finance. Minority committee staff have argued that the current framework could create securities-law exemptions, financial risks and gaps affecting investor protection, national security and ethics provisions.

Those are competing policy assessments rather than settled facts. The September 2026 negotiations added revised ethics language and other amendments, but the measure still failed to secure enough Senate votes to proceed.

DeFi is also part of the debate because lawmakers must determine when decentralized software developers, protocols or self-custodial transactions should trigger intermediary registration or other regulatory obligations.

How Does the GENIUS Act Fit In?

The GENIUS Act addresses payment stablecoins, while the CLARITY Act focuses more broadly on crypto market structure.

The GENIUS Act became federal law on July 18, 2025 and created rules for permitted payment stablecoin issuers. The FDIC subsequently proposed application procedures and prudential requirements covering reserves, redemption, capital, custody and risk management for qualifying issuers and insured depository institutions.

This means payment stablecoins already have a separate federal framework even while broader crypto market structure legislation remains unresolved.

How Gate Can Help

Regulatory classifications can affect whether particular crypto assets or services are available in a jurisdiction and what compliance requirements apply. Users assessing spot-market activity can review current market information through Gate Markets while checking applicable regional restrictions, asset disclosures and local rules before making transactions.

Market access does not determine whether a crypto asset is legally classified as a security, digital commodity or another regulated instrument under U.S. law.

Conclusion

The crypto market structure bill seeks to establish clearer SEC and CFTC rules for digital assets, crypto exchanges and intermediaries, but the CLARITY Act has not become law. Its September 15, 2026 Senate procedural vote failed 49–50, leaving further congressional action necessary. Meanwhile, SEC and CFTC rulemaking and the already-enacted GENIUS Act continue to shape the U.S. crypto regulatory framework.

FAQ

Did the crypto market structure bill pass Congress?

No. The House passed the CLARITY Act, and the Senate Banking Committee advanced it in May 2026, but the Senate failed to advance the bill on September 15, 2026 after a 49–50 cloture vote.

Would the CLARITY Act give the CFTC more authority over crypto?

Yes. The proposed legislation would significantly expand the CFTC's role in regulating qualifying digital commodities, spot-market trading platforms and associated intermediaries while retaining SEC jurisdiction over securities and investment-contract transactions.

Does the CLARITY Act eliminate SEC regulation of crypto?

No. The Securities and Exchange Commission would continue regulating securities, securities transactions and investment contracts involving crypto assets. The political dispute concerns where securities jurisdiction ends and CFTC digital-commodity jurisdiction begins.

Does the bill merge the SEC and CFTC?

No. Current crypto market structure legislation does not merge the SEC and CFTC. Proposals to combine the regulators are a separate policy idea. The CLARITY framework instead attempts to divide responsibilities and require regulatory coordination.