SEC is ready to seize the initiative: the regulator will present its own plan for the crypto market amid the freeze of the CLARITY Act.
While the U.S. Congress has gone on summer recess without passing the long-awaited CLARITY Act bill, regulators have decided not to wait for a change in the weather. On Friday, August 14, the Securities and Exchange Commission (SEC) 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 regulator under Paul Atkins, signaling a shift in approach: from reactive pursuit of violators to proactive rule-making.
What does the SEC propose?
According to the agenda, commissioners will consider advancing rules that would create a separate legal procedure for token offerings. The key idea is to simplify access to capital markets: issuers would be able to raise funds under a streamlined framework, bypassing full securities registration. The vote concerns only the publication of the proposal, with the full text to be released on Friday. This initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. Among other things, it includes exemptions from registration for certain offerings, "safe harbors" for decentralized projects, and custody standards for broker-dealers.
Atkins himself confirmed in a recent interview that the agency is ready to act independently, although he still considers passing legislation a priority. "Legislation is the way to make the process sustainable in the future," he emphasized.
Why lawmakers are stalling
The CLARITY Act, designed to allocate authority between the SEC and the CFTC, is blocked due to disagreements. Democrats opposed an amendment concerning ethics and crypto assets related to former President Donald Trump, while Republicans Josh Hawley and Jerry Moran criticized the provisions on stablecoin yields, siding with local banks. Majority Leader John Thune said the bill would be taken up first upon lawmakers' return, but passage would require 60 votes, which is unlikely without Democratic support.
The CFTC acts in tandem
The SEC is not alone. CFTC Chairman Michael Selig warned in July that if Congress fails to pass legislation, regulators will write all the rules for the crypto industry themselves. 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, Atkins acknowledges that such decisions are temporary. The next administration could overturn any rules if Congress does not ultimately codify them into law. 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.
My take: This is a turning point. The SEC under Atkins is effectively admitting that waiting for Congress is no longer viable and is taking on the role of market architect. For the industry, this is a double-edged sword: on one hand, long-awaited clarity and legal pathways for raising capital; on the other, regulatory arbitrariness that could shift with a new administration. In September, when the Senate returns to work, it will become clear whether lawmakers are ready to reclaim the initiative — or ultimately cede it to bureaucrats.