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Senate Rejects CLARITY Act Cloture, CFTC SEC Powers Blocked

By Drooid · Sep 18, 2026, 2:54 PM UTC · How we work

Summary

Senate Rejects CLARITY

The U.S. Senate failed to invoke cloture on the CLARITY Act, losing 49-50.
The bill would have given the CFTC authority over digital commodities and the SEC authority over investment contracts.
SEC Chair Paul Atkins and CFTC Chair Michael Selig pledged to issue rules using existing authority.
Coinbase shares fell about 10% and Circle’s stock dropped sharply after the vote.

Summary

Fed Raises Rates

Sheldon Diedericks warned Bitcoin could bounce to $70K-$72K if it falls below $75,000 support.
Ardi said holding above $75,000 could enable a breakout toward $83,000.
Federal Reserve (Fed) raised its target range to 3.75%-4.00%, prompting Bitcoin to recover to $75,960.7 by 17:50 ET.
Coinglass reported 91,737 traders liquidated $505.67 million in the prior 24 hours amid the CLARITY vote fallout.

History

Historical Context

In 1946, the U.S. Supreme Court’s 5-4 decision in SEC v. W.J. Howey Co. defined securities under the Howey Test. The Court’s 5-4 split addressed a $1.5 million citrus-land scheme, granting the SEC jurisdiction over investment contracts under federal securities law. Today, the Senate’s 49-50 defeat of the CLARITY Act mirrors that struggle, as the SEC and CFTC again clash over digital commodities and crypto contracts. The Howey precedent suggests future courts may again empower regulators, potentially forcing exchanges like Coinbase and Circle to comply with expanded oversight.

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Senate Rejects CLARITY

The U.S. Senate failed to invoke cloture on the CLARITY Act, losing 49-50.
The bill would have given the CFTC authority over digital commodities and the SEC authority over investment contracts.
SEC Chair Paul Atkins and CFTC Chair Michael Selig pledged to issue rules using existing authority.
Coinbase shares fell about 10% and Circle’s stock dropped sharply after the vote.

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