SEC Moves Ahead of Congress on Crypto Regulation

The U.S. Securities and Exchange Commission (SEC) is taking steps to regulate crypto fundraising without waiting for Congress to pass the Digital Asset Market Clarity Act.

The SEC has scheduled an open meeting on August 14 to vote on a proposal that would make it easier for crypto companies to raise money without registering as full securities. The rule, often called Regulation Crypto, would provide startups with a lighter route to raising capital and create a pathway for tokens to graduate from securities status once their underlying network becomes decentralized.

The SEC's move comes as the Clarity Act stalls in the Senate, where it needs 60 votes to pass its cloture test on September 15. The bill would divide oversight of crypto markets between the SEC and the Commodity Futures Trading Commission (CFTC), treating most established tokens as commodities under CFTC authority while keeping securities law focused on fundraising and other activity regulated by the SEC.

CFTC Chairman Michael Selig has stated that his agency will write rules regardless of Congress's decision, and is prepared to work with the SEC to define which agency controls which corner of the crypto market. This coordination matters because one of the industry's longest-running complaints has been the regulatory guessing game over whether the SEC or CFTC controls a particular token or trading platform.