On Friday, August 14, the U.S. Securities and Exchange Commission (SEC) will hold a vote on the Regulation Crypto draft — a special regime for token offerings. This will be the regulator's first major step toward establishing its own rules for the cryptocurrency market under Paul Atkins, who appears to have decided not to wait for Congress to act.
The Senate went on its August recess without considering the CLARITY Act, a bill that was supposed to divide oversight authority over digital assets between the SEC and the Commodity Futures Trading Commission (CFTC). In this situation, regulators are taking the initiative into their own hands.
SEC plans take shape ahead of Friday vote
While lawmakers remain idle, regulators are gaining control of the agenda. An official notice confirms: an open meeting is scheduled for 10:00 a.m. Eastern Time at SEC headquarters in Washington, with a live stream online. The agenda includes a single item from the Division of Corporation Finance.
Commissioners will consider a possible rule proposal that would carve out a separate legal framework for token offerings. Participants would gain the right to raise funds through a simplified scheme — via exemptive regimes, without the full securities registration process. The vote concerns only the publication of the draft, and the text itself will be released on Friday.
The initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's 2026 agenda. Key points include exempting certain token offerings from registration, "safe harbors" for decentralized projects, and custody standards for broker-dealers.
In late July, Atkins confirmed in an interview that the agency is ready to act independently, though he still considers passing legislation a priority. "Legislation is the way to make the process sustainable in the future," he emphasized.
Senate recess strengthens regulators' role
Democrats blocked consideration of the CLARITY Act due to an amendment related to ethics and the cryptocurrency assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran also spoke out against the wording on stablecoin yields, supporting the position of local banks.
Senate Majority Leader John Thune said the bill would be taken up first after lawmakers return, scheduling a vote for September. But passage will require 60 votes, and Thune's strategy to cut off debate is not yet possible without Democratic support.
Some analysts believe the industry can develop without this law. Grayscale's Head of Research, Zach Pandl, noted that the chances of passage are low even in 2026.
CFTC takes the same approach
The SEC is not acting alone. CFTC Chairman Michael Selig issued a similar warning on Fox Business in July. According to him, if Congress does not pass a law, regulators will write all the rules for the crypto industry. He again urged senators to support the bill, stressing that federal certainty is critical for businesses.
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.
However, in Atkins' view, such regulatory decisions are temporary. The next administration could overturn any rules if Congress does not enshrine them in law. This caveat also applies to the March recommendations.
Friday's vote will open a public comment period but will not lead to a final decision. The thresholds for exemptions and eligibility criteria in the proposal will show how far the SEC is willing to go without Congress. In September, when the Senate returns to work, it will become clear whether lawmakers are ready to reclaim the initiative.
**My take:** This SEC move is a pragmatic response to a political deadlock. The market has long demanded clarity, and if Congress cannot provide it, the regulator fills the vacuum. However, investors should remember: administrative rules are not a panacea. They can be revised with a change in administration, creating an additional layer of uncertainty for long-term strategies.