**[Clarity Act Fails in Senate, SEC and CFTC Take Over Crypto Regulatory Leadership]** According to a report by *Golden Finance* citing *POLITICO*, the U.S. Senate on Tuesday failed to advance the *Clarity Act* (Digital Asset Market Structure Bill), shifting the primary authority for cryptocurrency regulation to the SEC and CFTC. SEC Chairman Paul Atkins and CFTC Chairman Michael Selig have been laying the groundwork for this transition for months. Selig stated that existing statutory powers will be utilized to move forward and remarked, "The CFTC is fully prepared and ready to introduce rules for the new financial frontier." Atkins added, "Whether legislation passes or not, we will act decisively within the SEC's statutory authority." Senate Banking Committee Chairman Tim Scott commented that now is the time for the two agencies to establish clear rules for digital assets before Congress enacts legislation. The report noted that without the protection of a formal bill, agency rules are more vulnerable in court and under a future Democratic administration. Typically, agency rulemaking takes 18 months to two years and must be completed before the 2028 presidential election. The Democratic Party remains cautious about the pro-crypto stance of the two agencies.