SEC Prepares to Regulate Crypto if Congress Fails to Pass CLARITY Act

SEC Chair Paul Atkins said the agency is prepared to introduce its own rules governing key crypto market structure issues if Congress fails to pass the CLARITY Act. The legislation aims to provide lasting regulatory certainty and future-proof the framework for digital assets, but it's currently stalled in the Senate due to a compressed legislative schedule and unresolved negotiations over government ethics provisions tied to President Donald Trump's crypto interests.

Atkins expressed confidence that Congress would eventually pass the CLARITY Act, which he believes is the preferred path. However, he emphasized that the SEC has the authority to address regulatory issues through rulemaking if necessary. 'We're doing all we can to help them answer their questions and provide technical assistance,' Atkins said.

He added, 'Ultimately, statute is the way to future-proof something.' The Senate's focus on other priorities, including a Russia sanctions package and presidential nominees, has put the CLARITY Act at risk of being delayed or even shelved until next year. If Congress fails to act, regulatory progress would likely shift toward implementation of the GENIUS Act and rulemaking by the SEC and the CFTC.