In September, the US Senate did not advance the CLARITY Act, which had previously been approved by the House of Representatives in 2025. In the absence of dedicated legislation, the SEC and CFTC introduced new rules, proposing a federal framework for crypto platforms and a separate regime for certain crypto assets.

Rules Rely on Existing Agency Authority

The new regulations were adopted without a law defining the structure of the crypto market and are based on the agencies' current powers. This makes them less stable than provisions established by an act of Congress.

Congress Can Review and Limit Regulatory Initiatives

Lawmakers have tools to influence agency actions: reviewing rules before they take effect, restricting program funding, adopting amendments, repealing specific regulations through Congressional Review Act procedures, as well as conducting investigations and issuing subpoenas for public hearings.

Risk of Rule Changes After Midterm Elections

The midterm elections could shift the balance of power and regulatory agenda. According to Kalshi, the probability of Democrats controlling the Senate is 64%. If the political configuration changes, Congress may increase oversight and seek to review agency actions.