SEC Ready to Take the Initiative: Regulator to Present Its Own Regime for Tokens Amid Congressional Pause
While the U.S. Senate has gone on summer recess without considering the high-profile CLARITY Act bill, the Securities and Exchange Commission (SEC) has decided not to wait for favors from lawmakers. This coming Friday, August 14, the regulator will hold an open meeting to vote on the Regulation Crypto project — a special regime for token offerings. This will be the SEC's first major step toward creating its own regulatory framework for digital assets under the leadership of Paul Atkins.
What does the SEC propose?
According to the official agenda, commissioners will consider putting forward new rules that would create a separate legal procedure for token offerings. The key essence of the initiative is to provide issuers with the ability to raise funds through a simplified scheme, via so-called exemptive regimes, without the need to go through the full and costly securities registration process. It is important to understand that Friday's vote concerns only the publication of the draft for public comment, and the text of the rules themselves will be released on Friday.
This initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. Among the key points are exempting certain token offerings from registration, creating "safe harbors" for decentralized projects, and establishing custody standards for broker-dealers. This is a direct continuation of the line Atkins articulated in interviews in late July, emphasizing the agency's readiness to act independently, although he considers the passage of legislation a priority.
Why is Congress inactive?
The CLARITY Act, designed to allocate powers between the SEC and the CFTC, is blocked. Democrats opposed it due to an amendment concerning the ethics and crypto assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran also expressed disagreement with the provisions on stablecoin yields, supporting the position of local banks. 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. Analysts, including experts from Grayscale, assess the chances of the law being passed in 2026 as low.
The CFTC acts in sync
The SEC is not acting alone. CFTC Chairman Michael Selig previously stated that if Congress does not pass a law, 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.
My view: Friday's vote is just the beginning of a long process. The publication of the draft will open a period of public comment, but it will not provide a final decision. The key thresholds for exemptions and admission 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. However, the market is already receiving a clear signal: regulators intend to fill the legislative vacuum on their own, and this process will have long-term consequences for the entire industry.