SEC is ready to take the initiative into its own hands: the regulator will present its own draft rules for the crypto market.
While the U.S. Congress has gone on recess without passing the long-awaited CLARITY Act, the Securities and Exchange Commission (SEC) has decided not to wait idly by. This Friday, August 14, the regulator will hold an open vote on the Regulation Crypto proposal — a special regime for token offerings. This is the first such large-scale step by the SEC under Paul Atkins, effectively signaling: if lawmakers are stalling, regulators are ready to act on their own.
What does the SEC propose?
According to the official agenda, commissioners will consider creating a separate legal procedure for token sales. The key idea is a simplified capital-raising scheme through preferential regimes, without full and burdensome securities registration. The vote concerns only the publication of the proposal, with the full text to be released on Friday. This opens a public comment period, but not a final decision.
The initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. Key elements include exempting certain token offerings from registration, "safe harbors" for decentralized projects, and custody standards for broker-dealers. Atkins himself has repeatedly emphasized that legislation is a way to make the process sustainable in the future, but the current situation demands immediate action.
Why is Congress silent?
The Senate went on its August recess without considering the CLARITY Act — a bill that was supposed to divide authority between the SEC and the CFTC. Democrats blocked the discussion due to amendments concerning ethics and the crypto assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran also opposed the provisions on stablecoin yields, siding with local banks.
Senate Majority Leader John Thune stated that the bill would be taken up first upon lawmakers' return, scheduling a vote for September. However, 60 votes will be needed for passage, and without Democratic support, Thune's strategy to expedite discussions is not working so far. Analysts at Grayscale, including Zach Pandl, assess the chances of the law passing in 2026 as low, but note that the industry can develop without it.
The CFTC acts in sync
The SEC is not alone in its drive to fill the legislative vacuum. CFTC Chairman Michael Selig warned in a Fox Business interview in July: if Congress does not pass a law, regulators will write all the rules for the crypto industry. The two commissions are already working closely — 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.
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 is a landmark moment. The SEC is effectively acknowledging that tokens are not classic securities and is trying to create a working mechanism for legal capital raising. However, without legislative codification, these rules could be overturned by the next administration. The market needs certainty, and while Congress hesitates, the regulatory "turtle" is taking the initiative. Investors should closely watch the details of the proposal — they will determine who can participate in token sales without bureaucratic hurdles.