SEC Proposes 'Regulation Crypto' Framework Amid CLARITY Act Stall

Regulatory clarity for cryptocurrencies may be closer than expected as the SEC is poised to propose its first formal 'Regulation Crypto' framework. The development comes despite the CLARITY Act's stall in Congress, with some experts suggesting it could provide a faster route toward regulatory clarity.

According to Bitwise CIO Matt Hougan, the SEC can use its existing authority to create rules and exemptions, thereby bypassing the need for legislative action on the CLARITY Act. This approach is seen as a 'bypass road' around the stalled legislation.

The proposed framework could give new crypto projects a pathway to raise capital without immediately triggering full securities registration, followed by a transition toward more decentralized networks.