SEC bypasses Congress: regulator prepares its own regime for tokens amid CLARITY Act freeze
While the U.S. Senate has gone on its August recess without considering the high-profile CLARITY Act bill, the Securities and Exchange Commission (SEC) has decided not to wait for favors from lawmakers. The regulator has initiated its own process that could fundamentally change the rules of the game for digital asset issuers.
The key moment is the vote on the Regulation Crypto proposal scheduled for Friday, August 14. This is not just another initiative, but the first major step by the SEC under Paul Atkins to create a specialized regime for token offerings. The open meeting will take place at the agency's headquarters in Washington at 10:00 a.m. Eastern Time with a live webcast. The agenda includes a single item from the Division of Corporation Finance.
The essence of the proposal: simplified access to capital
The commissioners will consider whether to put forward rules that would create a separate legal procedure for raising funds through tokens. Participants would gain the right to use simplified schemes—so-called exemptive regimes—bypassing the full and burdensome securities registration process. It is important to understand: the vote concerns only the publication of the draft, and the text of the document itself will be made public on Friday. This opens a public comment period but does not mean the rules take effect immediately.
This initiative grew out of Project Crypto—a regulatory package that Atkins placed on the SEC's agenda for 2026. Key items include exempting certain token offerings from registration, creating "safe harbors" for decentralized projects, and establishing custody standards for broker-dealers. In essence, the regulator is trying to create a predictable environment for an industry that is tired of legal uncertainty.
Congress stalls, regulators take the initiative
It is telling that the SEC is not acting alone. CFTC Chairman Michael Selig made clear in July that if Congress does not pass a law, regulators will write all the rules for the crypto industry themselves. The two 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, this "administrative" path has a fundamental weakness. Any rules adopted by the regulator can be overturned by the next administration if Congress does not codify them into law. This is a temporary solution, not the durable legal framework that businesses require.
Friday's vote is just the first step. The thresholds for exemptions and eligibility criteria in the proposal will show how far the SEC is willing to go without lawmakers. In September, when the Senate returns to work, it will become clear whether senators are ready to reclaim the initiative or prefer to watch as regulators reshape the cryptocurrency landscape.
My view: This situation is a classic example of the executive branch filling a vacuum left by legislators. For the market, this is certainly a positive signal: even partial clarity from the SEC is better than complete uncertainty. However, investors should not be fooled—without the passage of the CLARITY Act or similar legislation, any regulatory progress remains fragile and reversible. Watch the details of the proposal on Friday: they will determine how comfortable the environment will be for new issuances in the coming years.