SEC Prepares Independent Crypto Regulation Amid CLARITY Act Delays
The US Securities and Exchange Commission (SEC) is preparing its own rulemaking path for crypto regulation as the CLARITY Act faces Senate delays. SEC Chair Paul Atkins says the agency can use existing powers to address regulatory gaps if Congress fails to act.
The CLARITY Act, which would divide digital asset oversight between the SEC and Commodity Futures Trading Commission (CFTC) while setting federal rules for trading platforms, cleared the Senate Banking Committee by a 15-9 vote on May 14. However, negotiations are ongoing, and Democratic senators want stronger provisions covering government ethics, consumer protection, illicit finance, conflicts of interest, and market integrity.
The SEC's Regulation Crypto Assets plan, introduced in March as a framework for token offerings and digital asset oversight, includes a token taxonomy and guidance on when an investment contract ends. It also proposes exemptions that could give crypto projects a defined route for raising capital.
Athkins has said only Congress can fully 'future-proof' crypto rules through market structure legislation, but the SEC can move first in areas covered by federal securities law. Proposed rules could advance even if the CLARITY Act moves into a later Senate window.