SEC Prepares Own Crypto Rules as Clarity Bill Hits Roadblock

The US Securities and Exchange Commission (SEC) is preparing to draft its own regulatory framework for cryptocurrencies if the proposed CLARITY bill fails to pass through Congress.

The CLARITY Act aims to provide a clear legal classification for digital tokens and cryptocurrencies, reducing ambiguity for issuers and investors.

Currently, the SEC relies heavily on enforcement actions against crypto firms, often using the Howey Test to determine whether a token qualifies as a security.

By drafting its own rules, the SEC may establish a more predictable regulatory environment, but it could also face criticism for overstepping its authority.