After the U.S. Senate blocked a procedural move to advance the crypto market structure bill known as the "Clarity" bill, the shift in U.S. crypto regulatory initiative from Congress to regulators has become more pronounced.

Decrypt, a blockchain outlet, reported on Sept. 19 that the Senate failed to pass the bill 49 to 50, and industry attention has since moved to the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.

In the vote, Democrats voted unanimously against the measure, and Republicans Susan Collins, Josh Hawley and Jerry Moran joined the opposition. Thom Tillis initially voted in favor but later changed to opposition. The move was intended to leave procedural room to bring the bill back for consideration later.

A blame game spread quickly afterward. Republicans argued Democrats had no intention from the start of moving the bill forward, while Democrats countered that the vote was forced before negotiations had even ended. Senator Cynthia Lummis, who took part in designing the bill, said Democrats were not serious about consumer protection and safeguarding U.S. leadership.

Some Democrats involved in negotiations said the bill had not been scrapped entirely. Senator Angela Alsobrooks (앤젤라 올스브룩스) said in an interview with Crypto in America that "the Clarity Act will not disappear," adding that more than 70 million Americans work in an unregulated industry and relevant officials have a responsibility to regulate it. Six Democratic lawmakers who took part in the negotiations also said they would continue bipartisan talks.

The industry is focusing more on regulators than on Congress. Kristin Smith (크리스틴 스미스) of the Solana Policy Institute said agency guidance is, for now, a more realistic path.

Regulators have also begun to move. The SEC on Sept. 17 unveiled steps that open a path for on-chain trading of tokenised U.S. stocks. The industry is taking the step as a sign that regulators are starting to set market rules first as congressional legislation is delayed.

The CFTC also took separate action. Commission staff set out a zero-tolerance stance toward passive software providers. It also submitted a broader draft rulemaking aimed at the overall crypto market for White House review. Details of the proposal have not yet been disclosed.

The vote showed more than the defeat of a single bill. It indicated where the regulatory centre of gravity in Washington is shifting. Comprehensive legislation in Congress left open the possibility of renewed talks, but the rules the market will face immediately are more likely to take the form of agency guidance and exemptions. As a result, the U.S. crypto industry will, for now, confront clarity from regulators rather than the Clarity Act in Congress.