SEC Proposes Regulation Crypto as CLARITY Act Fails to Pass
The US Securities and Exchange Commission (SEC) is preparing to unveil its own set of crypto regulations, dubbed Regulation Crypto. The move comes as Congress has yet to pass the CLARITY Act, which would divide oversight between the SEC and Commodity Futures Trading Commission (CFTC). The Senate left for recess without passing the bill, despite efforts from both parties.
SEC Chair Paul Atkins has stated that the agency is ready to act alone, even though he still prefers legislation. The proposal grew out of Project Crypto, a regulatory package Atkins placed on the SEC's 2026 agenda. It includes registration exemptions for token sales, safe harbors for decentralizing projects, and custody standards for broker-dealers.
A vote on proposing Regulation Crypto is set for August 14th, with a live webcast available. If approved, it would open a public comment period, but not finalize anything. The proposal's exemption thresholds and eligibility tests will reveal how far the SEC intends to go without Congress.