SEC takes the initiative: regulator to present its own plan for the crypto market
On Friday, August 14, the U.S. Securities and Exchange Commission (SEC) will hold a landmark vote on the Regulation Crypto draft — a new regime for token offerings. This is the first major step by the regulator under Paul Atkins, who has decided to act independently while Congress stalls.
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 digital assets space. Instead of waiting for lawmakers, the SEC is bringing its own draft rules to an open meeting. The livestream will begin at 10:00 a.m. Eastern Time from its Washington headquarters, with a single item on the agenda from the Division of Corporation Finance.
The essence of the initiative is to create a separate legal procedure for token offerings. Issuers will be able to raise funds through a simplified framework, via preferential regimes, bypassing full securities registration. Friday's vote concerns only the publication of the draft, and the text itself will be released at the end of the week. This will kick off a public comment period, but will not provide a final answer.
Project Crypto: What Atkins Has in Mind
The new regime grew out of Project Crypto — a regulatory package that Atkins placed on the SEC's agenda for 2026. The package includes exemptions for certain token offerings from registration, "safe harbors" for decentralized projects, and custody standards for broker-dealers. Atkins himself confirmed in late July that the agency is ready to act independently, although he still considers passing a law a priority. "A law is the way to make the process sustainable in the future," he said.
Notably, the CFTC is taking the same approach. Commission Chairman Michael Selig warned in July that if Congress does not pass a law, 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.
Political Stalemate and Prospects
Democrats blocked the CLARITY Act over an amendment concerning ethics and crypto assets related to former President Donald Trump. Republicans Josh Hawley and Jerry Moran also opposed the provisions on stablecoin yields. Majority Leader John Thune has promised to bring the bill up first after the Senate returns in September, but 60 votes are needed for passage, and Thune's strategy to limit debate has not yet found support among Democrats.
Friday's vote will show how far the SEC is willing to go without Congress. The critical thresholds for exemptions and eligibility criteria in the draft will serve as an indicator of Atkins' ambitions. In September, it will become clear whether lawmakers will reclaim the initiative.
My take: The SEC's regulatory activism is a double-edged sword. On one hand, it provides the market with long-awaited clarity, but on the other, it sets a precedent where the next administration could overturn these rules with a stroke of a pen. Until Congress codifies the rules into law, the crypto industry will live in an atmosphere of uncertainty, which holds back institutional investment.