SEC ready to set crypto rules itself if Congress fails

SEC Chairman Paul Atkins has indicated that the US securities watchdog is ready to draw up its own crypto market rules if Congress fails to pass the CLARITY Act. According to Atkins, the regulator is “ready, willing, and able” to introduce rules covering the same ground as the proposed law, as he told CNBC.

Legislation offers a more stable basis than internal rules

Atkins indicates that legislation through Congress is preferable to rules issued by the SEC itself. The reason is clear: rules that a regulator draws up itself can easily be reversed by a subsequent administration. A formal law offers a more durable framework that is less vulnerable to political changes. According to Atkins, a legal basis is therefore the only way to prevent the regulatory framework from shifting with each new government.

Yet the SEC does not want to wait idly. If the CLARITY Act ultimately fails to pass the Senate, the regulator is ready to act within the limits of its own authority. Atkins states that in that case, the SEC will intervene to provide clarity to the crypto market.

CLARITY Act still awaits Senate vote

The CLARITY Act has already taken several important steps in the legislative process. The bill passed both the House of Representatives and the Senate Banking Committee, where it was approved on 14 May by a vote of 15 to 9. Nevertheless, a full Senate vote has not yet taken place, leaving the law in a kind of holding pattern.

Atkins’ remarks come at a time when the call for clear crypto regulation in the US is growing louder. While other countries such as Hungary are already taking steps towards MiCA licences, the US sector has long been waiting for a clear legal framework. Whether Congress ultimately takes that step or the SEC itself takes the initiative will become clear in the coming period.