SEC prepares its own regulation for tokens: regulator takes initiative amid Congress pause
On Friday, August 14, the U.S. Securities and Exchange Commission (SEC) will vote on the draft Regulation Crypto — a special 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, independent of lawmakers.
SEC Does Not Wait for Congress: What the Regulator Proposes
While the Senate has gone on its August recess without considering the CLARITY Act — a bill designed to delineate the powers of the SEC and CFTC in the cryptocurrency sphere — regulators are moving to action. The official notice confirms: an open meeting is scheduled for 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 commissioners will consider proposing rules that would create a separate legal procedure for token offerings. Market participants would be able to raise funds under a simplified scheme — through exemptive regimes, without the full securities registration process. The vote concerns only the publication of the proposal, and the text itself 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. Key points 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 with CNBC that the agency is ready to act on its own, although he still considers passing a law a priority.
"A law is the way to make the process sustainable in the future," Atkins stated.
Political Stalemate and the Role of the CFTC
Democrats blocked consideration of the CLARITY Act due to an amendment concerning ethics and the cryptocurrency assets of former President Donald Trump. Republicans Josh Hawley and Jerry Moran also opposed the wording on stablecoin yields, supporting the position of local banks. Senate Majority Leader John Thune said the bill would be taken up first after lawmakers return, and scheduled a vote for September. But passage will require 60 votes, and Thune's strategy of delaying discussions is currently impossible without Democratic support.
Some analysts believe the industry can develop even without this law. Grayscale's head of research, Zach Pandl, noted that the chances of passage are low even in 2026. The CFTC is taking the same approach: commission chair Michael Selig warned in a Fox Business interview that if Congress does not pass a law, all rules for the crypto industry will be written by regulators. He has repeatedly urged senators to support the bill, emphasizing that federal certainty is critical for businesses.
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, in Atkins' view, such regulatory decisions are temporary. The next administration could overturn any rules if Congress does not eventually codify them into law. This caveat also applies to the March guidance.
My Take on the Situation
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. However, I expect the SEC's regulatory momentum to create a precedent that will be difficult to ignore — even if Congress ultimately passes its own law.