SEC Stands Ready to Regulate Crypto Independently if Clarity Act Stalls

SEC’s Regulatory Backup Plan

SEC Chair Paul Atkins has signaled that the Securities and Exchange Commission stands prepared to independently establish digital asset regulations should Congress fail to advance the Clarity Act. Speaking with CNBC on Monday, Atkins emphasized the agency would be “ready, willing, and able to come out with rules” addressing cryptocurrency market oversight. He stressed that statutory legislation represents the optimal path to ensure regulatory frameworks remain stable regardless of which administration occupies the White House.

“Statute is the way to future-proof something,” Atkins said, underscoring that the market requires “the certainty of a statute” to prevent regulatory approaches from shifting with each presidential transition. On Tuesday, he reinforced this position through a social media post, declaring himself “committed to supporting Congress in advancing” the legislation.

The Clarity Act’s Legislative Journey and Obstacles

The Clarity Act has achieved significant legislative progress but now faces an uncertain path to passage. The House approved the bill with a 294-134 vote in July 2025, and it advanced through the Senate Banking Committee in May 2026 with a 15-9 margin, though nine Democrats opposed it. However, the measure has not been scheduled for a full Senate floor vote, which would require 60 votes for passage.

Senate Majority Leader John Thune recently signaled to reporters that passage before the August recess appears unlikely, and the chamber has temporarily shelved the bill. Key points of contention among Senate Democrats involve the bill’s ethics provisions governing officials’ crypto dealings and disagreement over whether stablecoins should be permitted to generate yield. The Clarity Act would transfer exclusive regulatory authority over spot markets in digital commodities to the CFTC, moving most tokens outside SEC jurisdiction.

The SEC’s Existing Alternative Framework

Atkins has already developed a comprehensive regulatory structure as contingency planning. Project Crypto, unveiled in November, generated a Regulation Crypto rulemaking package on the SEC’s 2026 agenda that encompasses token registration exemptions, safe harbor protections for decentralizing projects, and standards for broker-dealer custody and trading operations.

The tension underlying Atkins’s position concerns regulatory permanence. In March, the SEC and CFTC jointly classified 16 digital tokens—including Bitcoin and Ethereum—as digital commodities through administrative guidance. This administrative action, unlike statutory law, can be withdrawn by a future administration without congressional involvement. This limitation reinforces why Atkins continues advocating for legislative action: statutory frameworks provide lasting certainty that administrative rules cannot guarantee.

Clear, stable regulatory rules could accelerate institutional adoption of digital assets including XRP, removing the compliance uncertainty that currently constrains mainstream finance participation in crypto markets.

Source: SEC Chair Paul Atkins, via Decrypt. Not financial advice.