SEC crypto rules could come if Clarity Act stalls, Atkins says

SEC crypto rules could arrive through the agency itself if Congress cannot pass the Clarity Act, Securities and Exchange Commission Chair Paul Atkins told CNBC on Monday. For investors, the stakes are basic but big: who regulates crypto markets can shape which tokens trade, how platforms operate, and how quickly rules can change.

Atkins said the SEC is “ready, willing, and able” to issue rules that would cover similar ground if the legislation fails in the Senate. He also said the agency would “stand ready to provide that” if lawmakers do not finish the bill.

Atkins still framed legislation as the preferred path. He told CNBC that “statute is the way to future-proof something,” arguing that markets need the stability of a law passed by Congress rather than rules that can shift when a new administration takes over. On Tuesday, Atkins wrote on X that he remained “committed to supporting Congress in advancing” the bill.

What are the SEC crypto rules Atkins is talking about?

The SEC’s fallback plan is tied to Project Crypto, an initiative Atkins announced in November. According to the agency’s 2026 agenda, the related Regulation Crypto rulemaking package would address token registration exemptions, a safe harbor for projects working toward decentralization, broker-dealer custody, and trading venues.

A safe harbor is a limited protection from enforcement if a company follows stated conditions. In this context, it would give some crypto projects room to develop without immediately facing the full weight of securities registration requirements, depending on how the final rule is written.

Atkins has described the SEC package as a bridge to the Clarity Act. That distinction matters because agency rules are easier to revise than a statute. A future SEC could change course without Congress passing a new law.

Where the Clarity Act stands in Congress

The Clarity Act passed the House by a 294-134 vote in July last year. It later cleared the Senate Banking Committee 15-9 in May, with nine Democrats voting against it. The bill has not yet reached the full Senate, where it would need 60 votes.

The Senate is also facing a tight calendar before its August recess. Senate Majority Leader John Thune recently indicated to reporters that the bill was unlikely to pass before that break, and the Senate has set it aside for now.

The bill would give the Commodity Futures Trading Commission exclusive authority over spot markets in digital commodities. A spot market is where assets are bought and sold for immediate delivery. The shift would move most tokens outside the SEC’s direct reach, according to the proposal.

Senate Democrats have objected to the latest draft, including its ethics rules for officials’ crypto activity, which they argue are not strong enough. The question of whether stablecoins can pay yield also remains unresolved.

Why a law would be harder to reverse

The SEC and CFTC issued guidance in March that classified 16 tokens as digital commodities, including Bitcoin and Ethereum. That guidance is administrative, meaning regulators can withdraw or replace it without a vote in Congress.

Atkins’ argument is that crypto markets need rules that can survive political turnover. If Congress passes the Clarity Act, the framework would be written into law. If it does not, the SEC says it is prepared to act on its own, but that route would carry less permanence.

This story draws on original reporting from Decrypt.