SEC Dives into Crypto Rules Without Waiting for Clarity Act

The Securities and Exchange Commission (SEC) has taken steps to create new rules for cryptocurrencies without waiting for clarity from Congress. Senate Majority Leader John Thune filed cloture before the August recess, but lawmakers left town. SEC Chair Paul Atkins scheduled an open meeting on August 14 to consider a tailored offering rule for certain crypto investment contracts.

The plan builds on a joint interpretation signed with the CFTC, splitting oversight of who watches what. It would carve out a lighter path for token offerings that today face full securities registration. The agency framed it as 'a tailored offering regime for certain investment contracts involving crypto assets.'

Stock tokens that track economic exposure to shares could soon trade on blockchains 24/7, in fractional sizes, with near-instant settlement. This carve-out is narrow, excluding voting and dividend rights. The New York Stock Exchange is already building a platform for on-chain settlement of US stocks and ETFs.

SEC Commissioner Hester Peirce cautioned that both boosters and skeptics may find the exemption less monumental than they expect. While the SEC is moving forward, the delay in the Clarity Act still matters for banks. A new administration can rescind SEC guidance without a vote, making rules and statutes different. The firms writing big checks, including BlackRock, Visa, and major banks, are funding blockchain settlement and custody.