SEC takes the initiative: regulator to present its own regime for tokens amid CLARITY Act freeze
On Friday, August 14, the U.S. Securities and Exchange Commission (SEC) will vote on the Regulation Crypto proposal — a special regime for token offerings. This is the first major step by the regulator under Paul Atkins, signaling a readiness to act without waiting for lawmakers.
While the Senate has gone on recess without considering the CLARITY Act, a bill designed to delineate the powers of the SEC and CFTC in the digital assets sphere, the regulatory vacuum is beginning to be filled from below. The official notice confirms: an open meeting will take place at 10:00 a.m. Eastern Time at SEC headquarters in Washington with a live webcast. The agenda includes a single item from the Division of Corporation Finance.
The essence of the initiative
The commissioners will consider whether to propose rules that would create a separate legal procedure for token offerings. Market participants would gain the right to raise funds under a simplified framework — through exemptive regimes, bypassing the full securities registration process. The vote concerns only the publication of the proposal; 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 items 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, although it still considers legislation a priority.
"Legislation is the way to make the process sustainable in the future," Atkins said.
Political context
Democrats blocked consideration of the CLARITY Act due to an amendment concerning ethics and crypto 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 stated that the bill would be considered first after lawmakers return, scheduling a vote for September. However, 60 votes will be required for passage, and Thune's strategy of cutting off debate is impossible 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 follows the same scenario
The SEC is not alone. CFTC Chairman Michael Selig issued a similar warning on Fox Business in July: if Congress does not pass legislation, all rules for the crypto industry will be written by regulators. He again urged senators to support the bill, emphasizing that federal certainty is critical for business.
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 never enshrines 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 analysis: This is a landmark moment. The SEC is effectively acknowledging that waiting for Congress is futile and is taking regulation into its own hands. However, this path creates a risk of fragmentation: rules established by the regulator could be overturned by the next administration, adding uncertainty to the market. For the industry, this is a dual signal — on one hand, long-awaited clarity; on the other, the fragility of these arrangements.