Observed Signal · Sep 22, 2026 · Policy Update · Source: CNBC Technology · Impact: 2/5 · Sentiment: Negative
US regulators rush to fill crypto gap after Clarity Act stalls
After the Clarity Act stalled in the Senate, U.S. regulators are moving quickly to establish crypto rules under existing authority. The SEC issued an order creating a temporary pathway for trading tokenized stocks, while the CFTC submitted a crypto rulemaking proposal to the White House for review. State attorneys general oppose the Act, arguing it would displace state powers, while industry leaders like Coinbase's CEO urge federal action. Regulators are also considering modernizing custody rules for crypto assets. The article highlights the regulatory uncertainty facing the crypto industry and the push for clarity from federal agencies.
Relevant to crypto regulation but not directly AdTech/MarTech, though may have indirect implications for digital advertising payments.
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Key Takeaways & Evidence Grounding
- SEC issued an order creating a temporary pathway for trading tokenized stocks.
- CFTC submitted a crypto rulemaking proposal to the White House for review.
- Bipartisan coalition of state attorneys general wrote to Senate opposing the Clarity Act.
- Coinbase CEO Brian Armstrong stated 'we can't wait on Congress and the Senate'.
- Senator Thom Tillis revised his vote to allow a motion to reconsider the Clarity Act.
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Coinbase CEO sees US crypto regulation advancing regardless of Clarity Act vote
Coinbase CEO Brian Armstrong expressed confidence that U.S. crypto regulation will advance regardless of the Senate vote on the Clarity Act, scheduled for September 15, 2026. He noted that the legislation has broad support from crypto firms, law-enforcement groups, and banks, and that senators he has spoken with are on board. Even if the bill fails, Armstrong indicated that the SEC and CFTC are prepared to publish rulemaking, ensuring regulatory clarity. Coinbase is diversifying beyond crypto spot trading, which has declined, with expansion into stocks, commodities, and foreign exchange. The company reported Q2 2026 revenue of $1.2 billion, down from $1.5 billion a year earlier, and a net loss of $359.5 million. Coinbase has also expanded internationally, establishing hubs in the UAE and Singapore.
US Senate Cloture Vote on Clarity Act Fails
The US Senate failed to advance the Digital Asset Market Clarity Act, voting 49-50 to invoke cloture, short of the 60-vote threshold. The bill would have established a market structure framework for crypto, dividing oversight between the SEC and CFTC and addressing stablecoin yield issues. Opposition from Democrats and some Republicans, citing ethics concerns and money laundering risks, along with lack of bipartisan support, led to its defeat. Following the vote, Bitcoin fell around 2.8-5% to approximately $75,000-75,900, XRP dropped over 8-9%, and crypto-related stocks including Coinbase and Circle declined, with over $655 million in liquidations. Analysts view the setback as non-fatal, noting alternative regulatory paths such as the SEC's proposed Regulation Crypto Assets and the GENIUS Act for stablecoins. Political dynamics may complicate future attempts, but the industry continues to seek clarity.
SEC Clears Path for Tokenized Stocks, Enabling 24/7 Trading
The US SEC has issued a five-year 'Innovation Exemption' allowing temporary trading of tokenized US NMS stocks on permissioned venues (TSVs), effective immediately. Conditions include full shareholder rights (dividends, voting), issuer veto, public auditable smart contracts on permissionless ledgers, and trading halts aligned with primary exchanges. Volume caps limit each venue to 75 large stocks and 0.25% of average daily volume, with KYC requirements and exemptions for certain liquidity providers from dealer classification. SEC Chairman Paul Atkins frames this as interim toward permanent rules, with public consultation launched. This follows the Senate's failure to advance the CLARITY Act and the CFTC's similar rule. The move may enable 24/7 trading, reduce minimum investment sizes, improve global access, and benefit firms like Coinbase, Robinhood, Bullish, and Equiniti, as evidenced by crypto-exposed stock rallies.
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