Another week, another round of headlines about the CLARITY Act and its siblings. 

If you’ve been following this saga with me, you know the rhythm by now: House passes a bill, Senate says “hold my beer,” regulators roll out initiatives, and entrepreneurs keep building because the clock doesn’t stop. 

This week was no different — but the stakes are getting higher as Congress reconvenes. Let’s unpack what happened on Capitol Hill, what the regulators just announced, and how builders can stay ahead.

Senate and Congress: New Drafts, New Promises

Remember the self‑imposed September 30 deadline? Scratch that. 
Last week, Representative French Hill, the House Financial Services Committee chair, told reporters that the CLARITY Act enjoys overwhelming bipartisan support and could pass within the next few weeks[1]. Hill emphasized that the bill passed the House on a suspension vote — a parliamentary procedure reserved for non‑controversial measures — showing its broad appeal[1]. 

That sounds encouraging, but there’s a catch: the Senate is writing its own version, and it’s not a carbon copy.

Blockworks reported on Aug 29 that the Senate Banking Committee plans to hold a markup hearing on Sept 30 to consider its Responsible Financial Innovation Act (RFIA)[2]. The committee’s draft, initially 35 pages, was an outline; the House’s CLARITY Act runs over 250 pages. To reconcile them, the Senate must blend the House text with its own ideas, gather votes, and avoid a government shutdown that could bump the markup to mid‑October[3].

On Sept 5, Blockworks obtained an updated 182‑page Senate draft and flagged two features that matter to entrepreneurs:

1. First, it includes a section titled “protecting software developers and software innovation,” which industry advocates have been pushing[4]. This section appears designed to shield coders and validators from being tagged as money transmitters or broker‑dealers.
2. Second, the draft exempts validators from certain anti‑money‑laundering and anti‑fraud requirements[5], acknowledging that running nodes isn’t the same as running an exchange. The draft also states that offering, selling or transferring an NFT does not constitute a securities offering[6] — a notable departure from the House bill. These differences will have to be hammered out when the Senate and House negotiate a final text later this fall.

To recap the timeline:

• Sept 30: Senate Banking markup of the RFIA, unless a budget fight delays it[3].
• Early Sept: Senate Agriculture Committee releases its own draft focusing on CFTC jurisdiction[7].
• Late Sept – Oct: Senate votes; Thanksgiving remains the aspirational deadline set by Sen. Cynthia Lummis.

In other words, we’re entering the sausage‑making phase. Expect last‑minute amendments and horse‑trading. Arnold & Porter warned last week that the final bill may diverge substantially from the House version because of the competing Senate committees and additional provisions[8]. 

As investors, we need to watch how these changes impact the safe harbors and token classifications that matter to capital raisers.

Regulators Step Up: Two Historic Joint Statements

As Congress debates, the SEC and CFTC decided they’d had enough of waiting. On Sept 2, staff from both agencies issued a joint statement clarifying that exchanges registered with the SEC or CFTC are not prohibited from facilitating trading in certain spot crypto commodities[9]. 

In plain English: if you are a regulated exchange, you can list and trade spot crypto assets without fearing that you’re accidentally violating securities laws. 

SEC Chair Paul Atkins said the statement is a “significant step forward in bringing innovation in the crypto asset markets back to America”[10] and emphasized that market participants should have the freedom to choose where to trade[10]. 

CFTC Acting Chair Caroline Pham echoed this, saying the message from the prior administration—that innovation was not welcome—is “over”[11]. 

Both leaders stressed that the joint effort is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint[12], and builds on the White House’s digital assets roadmap.

Then, on Sept 5, the two chairs released another joint statement on regulatory harmonization and announced a joint roundtable scheduled for Sept 29[13]. In the statement, Atkins and Pham proclaimed that it is “a new day” at the SEC and CFTC and pledged to consider harmonizing product definitions, data reporting, capital requirements and even innovation exemptions[14]. 

They described Tuesday’s joint staff statement as “only a first step”[15] and committed to align regulatory frameworks so they don’t stand in the way of progress[16]. The roundtable will be open to the public and webcast[17]. 

For entrepreneurs, this signals that the two agencies—often rivals—are genuinely cooperating to ensure there is no regulatory “no man’s land”[18]. If Congress delays, the agencies may use existing authority to create safe harbors and exemptions.

Entrepreneurs: The Long Road to Raising Capital

While lawmakers and regulators shuffle papers, startup founders keep building. 

The CLARITY Act’s promise to let startups issue tokens without tripping securities laws remains unfulfilled, but the new Senate draft hints at future protections for software developers and validators[4]. 

That’s encouraging for teams building decentralized protocols. Imagine launching a protocol and not having to worry that running a validator node will drag you into a money‑laundering compliance regime.

For now, entrepreneurs are relying on existing exemptions like Regulation Crowdfunding (Reg CF) and Reg A+, which allow the sale of securities to the public in limited amounts. These paths require heavy disclosures and limit the size of offerings. 

The CLARITY Act would require digital commodity exchanges, brokers and dealers to register with the CFTC within 180 days[19] and would thus create new venues for token trading. It would also assign the CFTC as the lead regulator for digital commodities[20], while the SEC would retain authority over investment contracts, thus ending jurisdictional turf wars[21]. 

Once those rules are in place, entrepreneurs could raise funds by selling “investment contract assets,” also known as SAFT or Simple Agreement for Future Tokens which the House bill defines as digital commodity tokens sold to raise capital [22]. Those tokens would initially be considered securities but could “morph” into commodities when a network becomes decentralized.

Signals From the Senate Draft

What’s new this week is the Senate draft’s explicit safe harbor for developers, which aims to protect coders who contribute to decentralized protocols. It also signals that NFTs would not automatically be securities[6], opening the door for projects in art, gaming, and social media to integrate token economics. These provisions respond to criticisms that the House bill was too focused on financial tokens and left creators exposed.

But there are still gaps. The Senate draft focuses largely on the SEC’s role and offers few details on the CFTC’s oversight, other than requiring the two agencies to issue joint rules defining and regulating digital commodities[23]. Industry groups, including state securities regulators, have warned that narrowing the definition of “investment contract” could limit fraud enforcement[24]. 

Entrepreneurs must keep compliance in mind, even if safe harbors are promised.

The Upside of Harmonization

The SEC–CFTC joint statement on Sept 2 clarifies that regulated exchanges can trade spot crypto commodities[9]. This could give token issuers more options for secondary trading once their tokens are live. 

The agencies’ plan to harmonize definitions and data standards[14] hints at a future where a single registration might suffice for both securities and commodity tokens—a dream scenario for startups. 

If the roundtable on Sept 29 results in clear guidance, companies might be able to raise capital and list tokens even before the CLARITY Act passes. Keep an eye on that date.

Reading Between the Lines

So what’s the bottom line from this week’s news? Here are my takeaways:

1. Bipartisan support is real, but the details matter. French Hill and others tout the CLARITY Act’s broad support[1], yet the Senate is rewriting key sections. Whether the final bill retains the House’s safe harbor for token distributions and definitions of digital commodities will determine how useful it is for raising capital.
2. Regulators are filling the void. The joint statements from the SEC and CFTC show that, in the absence of legislation, agencies are moving to give exchanges and issuers some breathing room[9][14]. If you’re building a protocol, start engaging with these comment processes. They could shape the rules you’ll live by.
3. Developers and creators get a nod. The Senate draft’s section on protecting software developers and excluding validators from AML requirements[4] is a sign that lawmakers are listening to technologists. The recognition that NFTs are not inherently securities[6] also shows progress.
4. Watch the September 29 roundtable. Harmonization could make or break the path forward. If the SEC and CFTC can agree on joint definitions and exemptions, entrepreneurs might have a viable path even before the CLARITY Act passes.

Looking Ahead

Expect September to be a whirlwind. 

Congress returns from recess with a government funding deadline and a markup hearing on the RFIA. The SEC and CFTC will host their harmonization roundtable at the end of the month, which could produce immediate guidance. 

Startups should continue to raise capital under existing exemptions while preparing compliance frameworks that can adapt to new rules. Keep your cap tables clean, your white papers transparent, and your community engaged. When clarity finally arrives, those who’ve played by the rules will be best positioned to seize the new opportunities.

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] [19] [20] [21] French Hill Optimistic About CLARITY Act’s Passage in Coming Weeks - CoinCentral

https://coincentral.com/french-hill-optimistic-about-clarity-acts-passage-in-coming-weeks/

[2] [3] [7] [22] US Senate eyes end of September for crypto market structure bill markup: Sources - Blockworks

https://blockworks.co/news/senate-september-market-structure-bill

[4] [5] [6] [23] Senate Banking Committee finalizes updated market structure bill draft  - Blockworks

https://blockworks.co/news/senate-crypto-market-structure-bill

[8] 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

[9] [10] [11] [12] SEC.gov | SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products

https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products

[13] [14] [15] [16] [17] CFTC and SEC Issue Joint Statement on Regulatory Harmonization Efforts | CFTC

https://www.cftc.gov/PressRoom/PressReleases/9115-25

[18] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC | CFTC

https://www.cftc.gov/PressRoom/SpeechesTestimony/phamatkinsstatement090525

[24] State Securities Regulators Stake a Claim in Crypto Asset Markets | Insights | Sidley Austin LLP

https://www.sidley.com/en/insights/newsupdates/2025/08/state-securities-regulators-stake-a-claim-in-crypto-asset-markets

[25] [26] [27] Shaping the future of blockchain gaming

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