SEC Steps Up Crypto Regulation as Congress Falters

The SEC proposed its first permanent digital-asset rule on August 18 to govern the crypto industry, and just one day later, President Donald Trump held a summit at the White House with CEOs from major companies like Coinbase Global, Ripple (with XRP), and Robinhood Markets.

This came after the Senate left town without voting on the Clarity Act, which many had assumed would pass in 2026. According to White House crypto advisor Patrick Witt, regulators will 'break glass' if Congress doesn't deliver on the Clarity Act, implying that regulatory measures could be taken soon.

The SEC and CFTC have been actively working on rulemaking and policymaking attempts since March, publishing a joint interpretation of existing laws in March. This guidance sorted 18 crypto assets as digital commodities beyond the SEC's reach, including major coins like Bitcoin (BTC), Ethereum (ETH), XRP, and Solana.

The proposed rule would exempt token sales of up to $5 million over four years from registration under the Securities Act of 1933. Token sales of up to $75 million a year would also be exempt if issuers provide financial statements and ongoing reporting. However, SEC Chairman Paul Atkins emphasized that actual legislation remains indispensable for creating durable rules.