The US Securities and Exchange Commission is preparing its own crypto rulemaking path as the CLARITY Act faces Senate delays. Chair Paul Atkins says the agency can use existing powers to address regulatory gaps if Congress fails to act. Still, he has called federal legislation the stronger and more durable option.
Atkins previously said the SEC and Commodity Futures Trading Commission can “fill in the gaps” without a new law. He also said regulators can “make do with our authority” while lawmakers continue negotiations. This position places agency rulemaking behind the SEC’s broader Regulation Crypto Assets plan.
Atkins introduced Regulation Crypto Assets in March as a framework for token offerings and digital asset oversight. The plan includes a token taxonomy and guidance on when an investment contract ends. It also proposes exemptions that could give crypto projects a defined route for raising capital.
The SEC’s 2026 agenda calls for clearer rules covering crypto fundraising, custody and blockchain-based securities trading. Atkins said the agency wants formal standards instead of relying mainly on enforcement cases. Any final rules would require a proposal, public comments and a Commission vote before taking effect.
Meanwhile, the CLARITY Act cleared the Senate Banking Committee by a 15-9 vote on May 14. The House passed its version by 294-134 in July 2025. The measure would divide digital asset oversight between the SEC and CFTC while setting federal rules for trading platforms.
Several disputes continue to slow Senate negotiations. Democratic senators want stronger provisions covering government ethics, consumer protection, illicit finance, conflicts of interest and market integrity. Lawmakers are also debating protections for decentralized finance developers and limits on rewards linked to stablecoins.
Senators Thom Tillis and Ruben Gallego have taken leading roles in negotiations over the bill’s ethics provisions. Details of any final compromise have not been released publicly. The bill still needs enough backing to clear the Senate’s 60-vote procedural threshold before a final vote.
Additionally, the Senate’s planned state work period begins August 10 and continues through September 11. Lawmakers therefore have a limited window to start the voting process before the break. Senate leaders are also handling nominations and other legislation that compete for floor time.
Atkins has said only Congress can fully ‘future-proof’ crypto rules through market structure legislation. A statute could define agency powers more clearly and reduce the chance of later policy reversals. SEC rules alone cannot settle every issue involving the CFTC’s authority over digital commodities.
Even so, the SEC can move first in areas covered by federal securities law. Those areas may include token fundraising exemptions, custody standards and rules for securities trading on digital platforms. Proposed rules could advance even if the CLARITY Act moves into a later Senate window.
The SEC’s plan would not create a complete market structure law. It would address market areas already tied to federal securities rules. Coordination with the CFTC would stay necessary for digital commodities and platforms offering several token types. Congress would still clearly control any wider division of federal authority.
The fallback plan would mark a shift from an approach centered mainly on lawsuits and case-by-case decisions. It would place more crypto policy decisions with regulators while Congress continues negotiations. The Senate schedule will decide whether legislation or agency action shapes the next stage of US crypto regulation.
Also Read: Crypto Prices Today: Bitcoin Holds Near $63,900 as Fed Pause and CLARITY Act Delay Shape Market Mood