SEC Takes Charge as Crypto Bill Stalls in Senate

The U.S. Securities and Exchange Commission (SEC) is taking matters into its own hands when it comes to digital asset regulation, as Congress stalls on a landmark crypto bill.

On August 14, the SEC will hold an open meeting to consider a proposal that could make it easier for cryptocurrency companies to raise money without undergoing full securities registration.

The Digital Asset Market Clarity Act has been stuck in the Senate since last year, despite clearing the House with bipartisan support. The bill aims to divide oversight of crypto markets between the SEC and the Commodity Futures Trading Commission (CFTC), treating most established tokens as commodities under CFTC authority while keeping securities law focused on fundraising and other activity regulated by the SEC.

CFTC Chair Michael Selig has stated that his agency will write its own rules, regardless of Congressional action. The SEC's proposed new offering framework, often called Regulation Crypto, would give startups a lighter route to raising capital and create a pathway for tokens to graduate from securities status once their underlying network becomes decentralized enough.