SEC takes the initiative: regulator prepares its own regime for tokens bypassing Congress
While the U.S. Senate has gone on its August recess without considering the CLARITY Act bill, the Securities and Exchange Commission (SEC) has decided not to wait for favors from lawmakers. This Friday, August 14, the regulator will hold an open vote on the Regulation Crypto draft — a special regime for token offerings that could become the SEC's first major step toward building its own regulatory framework for cryptocurrencies under Paul Atkins' leadership.
The official agenda confirms: the meeting will begin at 10:00 a.m. Eastern Time at the Washington headquarters with a live webcast. On the table is a single item from the Division of Corporation Finance. Commissioners will review the draft rules that designate token offerings as a separate legal procedure. Participants would gain the right to raise funds under a streamlined scheme — through exemptive regimes, bypassing full securities registration. The vote concerns only the publication of the draft, with the full text to be released on Friday.
Project Crypto: Atkins' Roadmap
This initiative grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. It includes exemptions for certain token 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 he still considers passing legislation the priority. "Legislation is the way to make the process sustainable in the future," he emphasized.
However, the situation in the Senate is complicated. Democrats blocked consideration of the CLARITY Act due to an amendment on ethics and crypto assets involving former President Donald Trump, while Republicans Josh Hawley and Jerry Moran opposed the provisions on stablecoin yields, backing the position of local banks. Majority Leader John Thune stated that the bill would be considered first after lawmakers return, but 60 votes are needed for passage, and Thune's strategy of cutting off debate without Democratic support is not working so far. Grayscale's Head of Research Zach Pandl assesses the chances of passage in 2026 as low.
CFTC Acts in Tandem
The SEC is not the only regulator ready to take the initiative. CFTC Chairman Michael Selig issued a similar warning in July: if Congress does not 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 defined conditions for staking, mining, and airdrops.
In Atkins' view, such regulatory decisions are still temporary. The next administration could overturn any rules if Congress fails to codify them into law. This caveat also applies to the March recommendations.
Friday's vote will open a public comment period but will not provide a final decision. The threshold values for exemptions and eligibility criteria in the draft 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 analysis: This SEC move is a signal to the market that regulatory certainty will be achieved at any cost, even through temporary mechanisms. However, for institutional investors, such "temporary" rules are a double-edged sword: they create an illusion of stability but do not provide the legal protection that only a law passed by Congress can offer.