SEC Readies Own Crypto Rules as CLARITY Bill Hits Snags in Congress

The U.S. Securities and Exchange Commission (SEC) is prepared to establish its own regulatory framework for cryptocurrencies if the proposed CLARITY bill fails to pass through Congress.

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

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