SEC seizes 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 hold a vote on the Regulation Crypto draft — a new specialized regime for token offerings. This will be the regulator's first major step under Paul Atkins to build its own regulatory framework for digital assets, effectively bypassing the CLARITY Act, which is stalled in Congress.
The Senate has gone on its August recess without considering the CLARITY Act — a key bill that was supposed to clearly delineate the powers of the SEC and the Commodity Futures Trading Commission (CFTC) in overseeing the crypto market. While lawmakers remain idle, regulators are seizing the initiative, and this fundamentally shifts the balance of power.
SEC's plans take concrete shape
According to the official agenda, the open meeting is scheduled for 10:00 a.m. Eastern Time at SEC headquarters in Washington, with a live webcast. On the table is a single item from the Division of Corporation Finance: proposing rules that create a separate legal procedure for token offerings.
The essence of the proposal is a simplified capital-raising scheme through preferential regimes, without full securities registration. The vote concerns only the publication of the draft, and the full text will be released on Friday. However, it is already clear: this is a direct continuation of Project Crypto — the regulatory package Atkins placed on the SEC's 2026 agenda. Key points include exempting certain 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," he emphasized.
Senate recess strengthens regulators' role
The blocking of the CLARITY Act is no coincidence. Democrats froze consideration due to an amendment related to ethics and the crypto assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran also opposed the language on stablecoin yields, supporting the position of local banks.
Senate Majority Leader John Thune stated that 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 limit debate is currently impossible without Democratic support. Some analysts, including Grayscale's head of research Zach Pandl, believe the industry can develop without this law — its chances of passing in 2026 remain low.
CFTC takes the same approach
The SEC is not acting alone. CFTC Chairman Michael Selig issued a similar warning on Fox Business: if Congress does not pass a law, regulators will write all the rules for the crypto industry. He has repeatedly urged senators to support the bill, emphasizing the critical importance of federal certainty 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 repeal any rules if Congress does not codify them into law. This also applies to the March recommendations.
Friday's vote will open a public comment period but will not lead to a final decision. The threshold values 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 analytical conclusion: This is a landmark precedent. For the first time in years, the SEC is moving from punitive enforcement to constructive rulemaking. If Regulation Crypto is sufficiently liberal, it could become the de facto standard for token sales, even if Congress continues to stall. But investors should remember: Atkins' regulatory sandbox is not a substitute for law, and any new commission composition could reverse course by 180 degrees.