SEC is ready to take cryptocurrency regulation into its own hands: what is known about the new Regulation Crypto project
While the U.S. Congress stalls on legislating rules for digital assets, the Securities and Exchange Commission (SEC) has decided to act directly. This Friday, August 14, the regulator will hold a vote on the Regulation Crypto proposal — a new specialized regime for token offerings. This is the first such large-scale step by the SEC under Paul Atkins, who is effectively taking on the role of legislator.
The Senate has gone on its August recess without considering the CLARITY Act — a bill that was supposed to clearly delineate the powers of the SEC and the Commodity Futures Trading Commission (CFTC) regarding cryptocurrencies. In this vacuum, regulators gain full control over the agenda.
What exactly is the SEC proposing?
According to the official agenda of the open meeting, which will take place at SEC headquarters in Washington at 10:00 a.m. Eastern Time, commissioners will consider putting forward rules that create a separate legal procedure for token offerings. The key innovation is a simplified capital-raising scheme. Issuers will be able to use streamlined regimes, avoiding the full and costly securities registration process. The vote itself only concerns the publication of the proposal, with its text to be released on Friday.
This initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. Key items include exemptions for certain token offerings from registration, "safe harbors" for decentralized projects, and custody standards for broker-dealers. Atkins has already made it clear: the agency is ready to act on its own, although it considers passing legislation a priority. "Legislation is the way to make the process sustainable in the future," he emphasized in a recent interview.
Why is the CLARITY Act stuck?
The bill has faced serious resistance. Democrats blocked its consideration due to amendments related to ethics and the crypto assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran opposed the provisions on stablecoin yields, supporting the position of local banks. Senate Majority Leader John Thune has promised to consider the bill first upon lawmakers' return, but passing it will require 60 votes, which is unlikely without Democratic support.
Experts, including Grayscale's head of research Zach Pandl, doubt the law will pass even in 2026. However, the industry can develop without it.
The CFTC acts in sync
The SEC is not alone in its efforts. CFTC Chairman Michael Selig warned that if Congress does not pass legislation, all rules for the crypto industry will be written by regulators. Both commissions are already working closely together: in March, they adopted a joint interpretive rule that removed most tokens from the scope of securities law and separately outlined conditions for staking, mining, and airdrops.
Nevertheless, Atkins calls such decisions temporary. The next administration could overturn any rules if Congress never enshrines them in law. Friday's vote will open a public comment period but will not lead to a final decision. The exemption thresholds and eligibility criteria in the proposal will show how far the SEC is willing to go without Congress.
My take: this is a landmark precedent. The SEC is effectively admitting that waiting for lawmakers is no longer an option and is trying to create a working regulatory mechanism from the ground up. However, if the rules are not backed by law, any new commission chair could overturn them, leaving the market in even greater uncertainty. Keep an eye on the proposal's details — they will determine whether this becomes real freedom for issuers or yet another bureaucratic trap.