CoinDesk analysis indicates that the failure of the U.S. "Digital Asset Market Clarity Act" to pass the Senate shifts the focus of crypto regulation to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Executives believe this presents opportunities for tokenization, DeFi, and trading, while legal experts warn that agency actions fail to address spot market regulation and long-term certainty. The SEC launched an "Innovation Exemption" on September 17, allowing eligible platforms to trade tokenized U.S. stocks through blockchain liquidity pools; the CFTC sought feedback on retail crypto leverage trading rules on October 5; and the SEC proposed a custody rule on October 1. Despite legislative setbacks, industry executives and legal experts generally agree that regulation will continue to advance, but they are divided on whether agency actions can provide a lasting foundation. Matt Hougan, Chief Investment Officer at Bitwise, believes that in the short term, agency regulation is more favorable than legislation, but the bill's failure also preserves regulatory moats for existing businesses like Coinbase and Kraken, potentially delaying competition and reducing costs.