SEC Clarifies Blockchain Financing Rules After CLARITY Act Failure
SEC Chair Paul Atkins has announced that the Securities and Exchange Commission will clarify rules for blockchain-based financing within its existing legal authority. This move comes after Congress failed to advance the CLARITY Act, which would have provided a clear regulatory framework for tokenized markets. The Senate voted 49-50 on September 15, falling short of the required 60 votes to pass the legislation.
The SEC's plans aim to keep a regulatory path open for blockchain-based financing despite the legislative setback. Atkins has not specified whether the SEC's approach will use exemptions, registration pathways, or staff guidance. The commission has continued work on tokenized markets and recently took steps to enable tokenized stocks, followed by nine questions and answers addressing how issuer commitments affect whether a token is treated as a security.
The SEC's leadership is set to change with Commissioner Hester Peirce leaving on October 2. After her departure, Atkins and Mark Uyeda will be the agency's only sitting commissioners. The timing of these changes may impact the SEC's ability to implement new regulations in this area.