Key Takeaways
- SEC Chair Paul Atkins says the agency is prepared to issue its own crypto market rules if Congress fails to pass the CLARITY Act.
- Atkins still prefers legislation, arguing the CLARITY Act would provide stronger, long-term legal certainty than SEC rulemaking alone.
- The bill faces growing time pressure as Senate priorities and unresolved ethics negotiations threaten its chances before the August recess.
SEC Chair Paul Atkins has signaled the regulator will not wait indefinitely for Congress, telling CNBC the agency stands ready to introduce its own rules covering key crypto market structure issues if lawmakers fail to pass the CLARITY Act.
Atkins said the SEC could address many of the same regulatory questions through its own rulemaking authority, though he stressed congressional action remains the preferred path and expressed confidence the legislation would eventually clear Congress.
Statute still ranks above rulemaking in its hierarchy. Atkins told CNBC the agency is “ready, willing, and able” to write the rules itself, while arguing legislation would provide lasting regulatory certainty, future-proof the framework governing digital assets, and give the SEC clear direction for overseeing the crypto market.
Agency staff is meanwhile providing technical assistance to lawmakers as they work through the market structure bill.
Senate Timeline Squeezes the Bill
Comments landed against a deteriorating legislative calendar. Senate leadership has sidelined the digital asset market structure legislation to prioritize a Russia sanctions package and presidential nominees, shrinking the window before the August recess, while negotiations over government ethics provisions tied to President Donald Trump’s crypto interests remain unresolved.
Ethics language has stalled the bill for months, and the compressed schedule now threatens industry efforts to secure the comprehensive CLARITY Act in 2026.
Institutional pressure runs the other way. BlackRock, Franklin Templeton, Fidelity, and other Wall Street giants publicly backed the CLARITY Act this week, adding asset management muscle to a lobbying push that has so far failed to secure floor time.
SEC Groundwork Already Laid
Atkins arrives at this standoff with substantial unilateral progress behind him. In March, the SEC issued a landmark interpretation of federal securities laws classifying Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP as digital commodities rather than securities, resolving a question that consumed years of litigation under predecessor Gary Gensler.
His November remarks under the Project Crypto banner outlined a formal token taxonomy, a refined application of the Howey test for investment contracts, and a forthcoming Regulation Crypto proposal covering tailored disclosures, exemptions, and safe harbors for digital asset distributions.
Precedent for the fallback position also exists. Atkins told a FINRA conference in May that the SEC and CFTC could fill the gaps in crypto regulation absent legislation, while warning that future-proofing would be difficult without a statute.
Durability remains the core weakness of rulemaking, since a future commission could reverse course as easily as this one did during the Gensler era. September’s return from recess now becomes the decisive stretch for whether Congress or the agency writes America’s crypto market rules.
Top Trending Crypto Articles
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
