SEC Threatens to Draft Own Crypto Rules as Institutional Blockchain Adoption Accelerates

The Securities and Exchange Commission (SEC) has warned lawmakers that it will draft its own crypto market rules if the CLARITY Act stalls in Congress. The agency's statement comes as major banks like Morgan Stanley are expanding their institutional blockchain integration, launching spot Ethereum and Solana exchange-traded products.

Morgan Stanley's decision to list spot ETH and Solana ETPs marks a notable expansion beyond Bitcoin. While Bitcoin spot ETPs have been available in the US since early 2024, Ethereum and Solana products represent a deeper push into programmable blockchain exposure.

The SEC's posture effectively raises the stakes on the CLARITY Act, which has been teetering in the Senate. With less than four days before a scheduled vote, major banking interests have been pushing to weaken or stall the legislation. The agency's willingness to act unilaterally signals that senior officials do not intend to leave the market in a regulatory vacuum.