SEC takes the initiative: regulator prepares alternative to CLARITY Act
While the U.S. Congress has gone on summer 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 new specialized regime for token offerings. This is the first such large-scale step by the SEC under Paul Atkins, who clearly intends to fill the legislative vacuum with his own rules.
The essence of the proposal
According to the official agenda, commissioners will consider advancing rules that would create a separate legal procedure for token sales. The key innovation is a simplified capital-raising scheme through preferential regimes, without mandatory full registration of securities. It is important to understand: the vote concerns only the publication of the draft, and the text itself will be released on Friday, after which a public comment period will begin.
This initiative is a direct continuation of Project Crypto, the regulatory package that Atkins placed on the SEC's agenda for 2026. Inside — exemptions for certain offerings from registration, "safe harbors" for decentralized projects, and custody standards for broker-dealers. Atkins himself confirmed in a recent interview: the agency is ready to act independently, although it considers passing a law a priority. "A law is the way to make the process sustainable in the future," he emphasized.
Political deadlock
The Senate went on recess without considering the CLARITY Act, which was supposed to distribute powers between the SEC and the CFTC. Democrats blocked the discussion due to amendments concerning ethics and crypto assets of former President Trump. Republicans Josh Hawley and Jerry Moran also opposed the wording on stablecoin yields, supporting the position of local banks. Majority Leader John Thune promised to return to the issue in September, but 60 votes are needed for passage, and without Democratic support, that is unlikely.
Notably, the CFTC is following the same scenario. Commission Chairman Michael Selig warned: if Congress does not pass a law, regulators will write all the rules for the crypto industry. 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 outlined conditions for staking, mining, and airdrops.
However, in Atkins's view, such decisions are temporary. The next administration could overturn any rules if Congress does not enshrine them in law. This caveat also applies to the March recommendations. Friday's vote will open public comment 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 lawmakers. In September, when the Senate returns to work, it will become clear whether legislators are ready to reclaim the initiative.
My take: This SEC move is a pragmatic response to the prolonged legislative crisis. The market is tired of uncertainty, and the regulator, by offering concrete frameworks, is effectively taking on the role of a legislator. But do not be fooled: without the CLARITY Act, any SEC rule remains fragile and could be revised at any moment. For the industry, this is more of a tactical respite than a strategic solution.