CLARITY Weekly: Market-Structure Moves and the Battle for Clarity

Washington loves deadlines. 

The last round of Capitol Hill deadlines came and went: July 18 saw the GENIUS Act signed into law and the House passed the CLARITY Act, while the Senate set a September 30 target to draft its own market‑structure bill. 

August’s recess, however, has shown how quickly those dates slip. In the past week, the timeline for digital‑asset legislation shifted again, regulatory agencies rolled out new initiatives, and industry voices pushed for clarity that goes beyond token classifications. 

Here’s what happened, and why it matters for blockchain builders.

Senate and House: A Moving Target

The Senate has not yet taken up the House’s version of the CLARITY Act. Officially, the chamber is in recess and met only for pro‑forma sessions on Aug 19 and Aug 22, conducting no legislative business[1]. 

Behind the scenes, though, Senators are scrambling to reconcile competing drafts. The Senate Banking Committee released a discussion draft in July that diverges from the House’s bill; Committee Chairman Tim Scott still aims to finalize the bill by Sept 30[2]. 

However, leading sponsor Senator Cynthia Lummis told a SALT conference that the goalpost has shifted: the final market‑structure bill will be on the President’s desk before Thanksgiving, not by Sept 30[3]. Lummis said the Banking Committee plans to vote in late September, while the Agriculture Committee – which oversees the CFTC – will review the bill in October[3]. She estimated 12 to 18 Democratic senators are prepared to support the legislation[3].

The delay underscores how messy this process is. The Senate must blend the House’s CLARITY Act with its own draft, integrate amendments on stablecoins and market infrastructure, and satisfy both the Banking and Agriculture Committees. An Arnold & Porter advisory warns that the final bill could differ significantly from the House version because of these competing interests[4]. 

In short: don’t bank on the September deadline, but expect accelerated negotiations as lawmakers return to Washington after Labor Day.

Regulatory Agencies Take the Initiative: CFTC Crypto Sprint, Sec Project Crypto

While Congress stalls, regulators are not sitting idle. 

The Commodity Futures Trading Commission (CFTC) launched Phase 2 of its “Crypto Sprint” on Aug 21, seeking public feedback on how it should regulate crypto spot markets and tokenized collateral[5]. The consultation asks whether leveraged or margined retail spot trades should be permitted on CFTC‑registered venues, how to classify digital assets that aren’t clearly commodities, what segregation obligations exchanges should follow, and whether decentralized finance projects need registration[6]. 

Comments are due Oct 20, and acting CFTC Commissioner Caroline Pham said enabling regulated digital‑asset markets is a top priority[5]. She emphasized coordination with the SEC’s Project Crypto, the securities regulator’s own initiative to draft crypto‑specific disclosure, custody and trading rules[5].

Earlier this summer, the SEC unveiled Project Crypto, with Chairman Paul Atkins stating that “most crypto assets are not securities” and that the agency must shift from enforcement‑driven regulation to clear rules of the road[7]. Although the SEC has not issued new proposals in the past week, staff are reportedly working on guidance for token distributions, safe harbors for network rewards, and updated custody rules – all part of Project Crypto’s mission. 

The program aligns with the White House’s digital‑asset policy report, which calls on agencies to allow the trading of digital assets using existing authorities, protect the right to self‑custody, and promote U.S.-dollar‑backed stablecoins[8].

For entrepreneurs, this means two things: 

• Regulators are preparing to fill the gap if Congress delays, and the dialogue is open for input. The CFTC’s comment period offers a rare chance to shape retail crypto trading rules.
• Washington believes that most tokens should not be treated as securities and is exploring ways to harmonize registration and exemption frameworks.

Foreign Boards of Trade: Bringing Liquidity Home

One less noted but important development is a CFTC advisory allowing offshore crypto exchanges to register as “Foreign Boards of Trade” (FBOTs). Under this advisory – part of the same crypto sprint – overseas platforms can legally offer crypto trading to U.S. clients by registering with the CFTC[9]. 

Acting CFTC Director Caroline Pham told CoinTelegraph that the move “welcomes Americans back” and opens U.S. markets to the world[9]. The decades‑old FBOT program already allows foreign futures exchanges to serve U.S. traders; extending it to crypto is meant to boost liquidity and give Americans access to a broader set of exchanges[9]. 

This policy change could allow blockchain projects to list tokens on offshore platforms and still access U.S. investors, though it will come with compliance requirements.

Entrepreneurs and the Hunt for Capital

The CLARITY Act’s promise is not just about compliance – it’s about opening capital channels. 

Under existing securities laws, many token projects have raised capital via private placements, Reg D offerings or crowdfunding exemptions like Reg CF and Reg A+. StartEngine, for instance, continues to facilitate such raises for blockchain companies under existing exemptions. 

However, entrepreneurs are eager for a framework that explicitly classifies digital assets and sets rules for secondary trading, enabling tokens to be sold to the general public without navigating uncertain securities liabilities.

What’s Happening With the SEC?

The SEC hasn’t released new rule proposals in the past week, but its posture is evolving. Project Crypto continues internally, with staff reportedly drafting frameworks for token offerings and secondary trading. 

The commission is also expected to coordinate with the CFTC’s crypto sprint, as both agencies implement the White House’s digital‑asset policy report. The CFP Board’s policy update notes that the report recommends protecting the right to use public blockchain networks and self‑custody, ensuring fair access to banking, and adopting technology‑neutral regulations[8]. 

For StartEngine, this combination of SEC and CFTC action points to an eventual environment where digital assets can be offered through regulated platforms with clear classifications, safe harbors and investor protections.

Takeaways for Builders and Investors

The past week’s developments reveal both momentum and uncertainty. Here are key takeaways for blockchain entrepreneurs and StartEngine’s community:

1. Deadlines are soft, but progress is real. The new Thanksgiving timeline shows that the Senate intends to act this year[3], even if September’s deadline slips. Don’t interpret delays as defeat – rather, they signal that lawmakers are negotiating the details, not abandoning the project.
2. Regulators are stepping in. The CFTC’s Phase 2 Crypto Sprint invites public feedback on pivotal issues like leveraged spot trading, DeFi registration, and token classification[6]. Participating in this consultation is a way for builders to influence policy. Meanwhile, the SEC’s Project Crypto aims to modernize securities laws and may introduce safe harbor pathways.
3. Access to capital may expand through FBOT registration. The CFTC’s advisory on foreign boards of trade could allow U.S. investors to trade tokens on registered offshore exchanges[9]. This opens new venues for liquidity but will come with compliance obligations.
4. Stay nimble but prepare. Entrepreneurs should continue using existing exemptions (Reg CF, Reg A+, Reg D) to raise capital while building compliance frameworks that can adapt when clarity arrives. Keep record‑keeping and disclosure practices robust so you can quickly transition to new rules.

Looking Ahead

With the calendar turning to September, expect a flurry of activity. 

The Senate Banking Committee is scheduled to return and mark up its market‑structure bill, and the Agriculture Committee will debate commodities provisions. The White House’s support for the CLARITY Act and the coordination between the SEC and CFTC suggest that, even if Congress falters, regulatory agencies will push ahead. 

But true transformation requires legislation; only Congress can set a statutory framework that pre‑empts ambiguous court rulings and enforcement actions.

For StartEngine and the companies raising on our platform, this moment is both challenging and exciting. On one hand, the patchwork of securities laws still governs most token raises. On the other, there is a real chance that by year’s end we will finally have a federal law distinguishing digital commodities from securities, establishing regulated venues for token trading, and protecting the right to self‑custody. 

When that happens, the entrepreneurs who stayed engaged, provided feedback, and maintained compliance will be best positioned to seize new opportunities. 

As always, we’ll call it like we see it. Stay tuned.

Best regards,  

Howard Marks  
CEO, StartEngine  

Important Disclosures

This article may contain forward‑looking statements and projections. These are not guarantees; actual outcomes may differ materially.

Investing in private, pre‑IPO companies is highly speculative and illiquid. Such investments are intended only for accredited investors who can bear the risk of total loss. Past performance does not guarantee future results. Consult a financial advisor before investing.

Securities offered through StartEngine Primary, LLC, member FINRA/SIPC. This is a general investment recommendation for accredited investors under Regulation Best Interest; it is not personalized investment advice. Review our Form CRS and Reg BI disclosure to understand our services and conflicts.

Sources

[1] Legislative Updates | Administrative Conference of the United States

https://www.acus.gov/legislative-updates

[2] [4] Clarifying the CLARITY Act: What To Know About the House Crypto Market Structure Bill and Its Path to Law | Advisories | Arnold & Porter

https://www.arnoldporter.com/en/perspectives/advisories/2025/08/clarifying-the-clarity-act

[3] Market Structure Bill Will Be Before President Trump by Thanksgiving, Says Sen. Lummis

https://www.coindesk.com/policy/2025/08/20/market-structure-bill-will-be-before-president-trump-before-thanksgiving-says-sen-lummis

[5] CFTC seeks feedback on White House crypto roadmap implementation

https://blockport.news/crypto-market-news/cftc-crypto-sprint-phase-two-public-comment/

[6] CFTC Announces Latest Crypto Sprint Initiative | Davis Wright Tremaine

https://www.dwt.com/blogs/financial-services-law-advisor/2025/08/crypto-sprint-cftc-digital-asset-clarity

[7] [8] August 2025 Public Policy Update | CFP Board 

https://www.cfp.net/news/2025/08/august-2025-public-policy-update

[9] CFTC Clears Path to Allow US Citizens to Access Offshore Crypto Exchanges

https://cointelegraph.com/news/cftc-pathway-americans-trade-offshore-crypto-exchanges

[10] [11] [12] Shaping the future of blockchain gaming

https://xsolla.com/blog/xsolla-responds-to-us-clarity-act

[13] US Senator Lummis Says Crypto Market Structure Bill Will Become Law by 2026

https://cryptomus.com/blog/us-senator-lummis-says-crypto-market-structure-bill-will-become-law-by-2026-news