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SEC to address crypto regulations in absence of CLARITY passage
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- DeepHorus
The U.S. Securities and Exchange Commission (SEC) has scheduled an open meeting for Friday that could significantly shape digital asset policy without new legislation from Congress. According to the agency’s public agenda, the commission will consider “new rules to create a tailored offering regime for certain investment contracts involving crypto assets.” The move comes just days after the Senate failed to advance the Digital Asset Market Clarity Act (CLARITY), a bipartisan bill intended to give financial regulators a comprehensive framework for overseeing cryptocurrencies.
The CLARITY Act was widely viewed as the most promising path toward legal certainty for the crypto industry, as it would have clarified whether digital assets are securities, commodities, or fall under a new category. Lawmakers spent months negotiating the bill, which also included provisions for consumer protections, market structure, and stablecoin oversight. However, the Senate missed an opportunity to pass it before the August recess, leaving the SEC to act on its own. SEC Chair Paul Atkins had already signaled that the agency was “ready, willing, and able to come out with rules” on digital assets if Congress failed to deliver.
The SEC’s Friday meeting is expected to address a tailored registration framework for crypto-related investment contracts, potentially offering issuers a clearer path to comply with federal securities laws. While the exact contents of the proposed rules remain unknown, experts anticipate they could include exemptions for certain tokens, streamlined disclosure requirements, and safe harbor provisions for decentralized projects. An SEC spokesperson told Cointelegraph: “As Chairman Atkins has said, clear rules of the road for digital assets must be future-proofed and the SEC will continue to support bipartisan Congressional efforts to deliver the CLARITY Act to President Trump’s desk. In the meantime, the Commission will work to advance a regulatory framework – within our authority and in line with market structure legislation – that will help ensure the United States remains the crypto capital of the world.”
The impact of the SEC’s move is potentially enormous. If the commission adopts new rules, it could fundamentally change how crypto exchanges, token issuers, and investment funds operate in the U.S. Markets would gain a degree of regulatory clarity that has been missing for years, potentially attracting institutional capital and reducing the risk of enforcement actions. However, there are also concerns that the SEC might overreach its statutory authority, leading to legal challenges that could drag on for years. The agency’s framework must align with market structure legislation, but exactly how much discretion the SEC has without congressional action remains an open legal question.
Reactions from the crypto industry have been cautiously optimistic, though many emphasize that durable clarity can only come from legislation. Blockchain Association CEO Kristin Smith called the SEC’s initiative a “constructive step” but reiterated the need for CLARITY to be signed into law. Some consumer advocacy groups, meanwhile, warn that any tailored regime must not weaken investor protections. On Capitol Hill, Senate Majority Leader John Thune has already filed a motion for cloture on the CLARITY Act when lawmakers return on September 14, suggesting the bill is not dead. Still, it would need to clear a filibuster, reconcile with the House version, and reach President Trump’s desk—where ethics concerns over his family’s crypto ventures could become a flashpoint.
The political backdrop adds further uncertainty. Several lawmakers have called for the market structure bill to include ethics provisions addressing potential conflicts of interest involving the president’s business dealings. These fights could delay or derail the bipartisan compromise. At the same time, the White House has vowed to get CLARITY across the “finish line” in September, according to a recent statement from the administration. The SEC’s rulemaking may therefore be designed as a stopgap, but it could also serve as a model for the legislation if congress ultimately acts.
Looking ahead, the crypto market will be watching Friday’s SEC meeting with intense interest. If the commission proposes concrete rules, the ensuing public comment period will give industry participants, legal scholars, and consumer advocates a chance to shape the final framework. Should CLARITY pass in September, the SEC would likely align its rules with the new law, creating a more coherent regulatory environment. Until then, the agency’s initiative represents the most concrete progress on crypto regulation in months, offering both risks and opportunities for a sector that desperately needs certainty. The outcome could either solidify the United States’ position as the global crypto capital or fuel further legal battles over the proper boundary between agency authority and legislative intent.
