SEC Shapes Crypto Regulations as CLARITY Act Stalls

The US Securities and Exchange Commission (SEC) is quietly shaping the regulatory framework for cryptocurrencies while Congress debates the CLARITY Act, which has stalled due to ethics provisions and consumer protections.

Since January 2026, the SEC has issued a joint interpretation with the Commodity Futures Trading Commission (CFTC), clarified how federal securities laws apply to crypto assets, launched Project Crypto, and begun developing rules covering token offerings, broker-dealer custody, and crypto trading venues.

The March interpretation introduced a taxonomy for digital assets, clarified that many crypto assets are not themselves securities, and addressed issues including staking, airdrops, and wrapped assets. Commissioner Hester Peirce has continued publishing policy statements clarifying how existing securities laws apply to emerging sectors such as tokenized securities, on-chain lending, and crypto vaults.

While the SEC's initiatives cannot replace an act of Congress, they can substantially influence how existing securities laws are interpreted and applied. The agency is writing many of the rules that will govern America's crypto markets, regardless of whether the CLARITY Act passes or stalls.