SEC Chair Atkins Endorses CLARITY Act as Senate Weighs Crypto Bill

SEC Chairman Paul Atkins threw the agency's weight behind the CLARITY Act on July 28, saying the regulator is “doing everything possible” to help Congress pass the crypto market structure bill. The endorsement comes as the Senate faces a tight calendar before the August recess.

Atkins, in a CNBC interview the day before, laid out a dual-track strategy: active support for the legislation and parallel work on SEC rulemaking in case the bill stalls. “I am optimistic about the adoption of the CLARITY Act by Congress, and we are doing everything possible to assist them, answer their questions, and provide technical support,” he said. “But ultimately, the law is the only way to ensure a sustainable framework. We are ready, determined, and able to publish our own rules to address the same issues.”

The CLARITY Act would define which digital assets are securities and which are commodities, giving issuers clarity before token launches. The bill cleared the House in June but has faced delay in the Senate, where supporters see a narrow window to pass it this session. A competing Senate bill, the Lummis-Gillibrand measure, overlaps on some provisions but uses different classifications. Atkins’ public backing signals the SEC wants to avoid a protracted debate over jurisdiction, two people familiar with the agency’s thinking told AlphaScala.

SEC staff are already drafting rules covering market structure, exchange oversight, and administrative compliance for crypto firms. Atkins said the agency would finalize those rules “whether the bill passes or not.” That timeline gives Congress an implicit deadline: act before August or see the SEC set standards unilaterally. Industry lawyers note that SEC rules, while faster, lack the legal durability of a statute and could be reversed by a future commission.

For crypto companies, the difference is material. The CLARITY Act would create a formal registration path for tokens, exchanges, and DeFi protocols. SEC rules would likely mirror many of the same requirements but leave firms exposed to enforcement actions if they misjudge agency interpretations. “A law is permanent; a rule is a memo from the current chair,” said Sarah Chen, a partner at Blockchain Legal Partners. She said the market is pricing in a 60% chance of passage before year-end, up from 45% before Atkins’ statement.

Tokens tied to U.S. regulatory exposure, such as those issued by Coinbase and Ripple, have been sensitive to news on the bill. Coinbase stock rose 3.2% on July 28 after Atkins’ remarks, paring earlier losses tied to a broader tech selloff. Bitcoin and Ether were flat, suggesting the market sees the bill as a mid-cycle catalyst rather than an immediate trigger.

Atkins’ stance also puts pressure on Senate Banking Committee Chair Sherrod Brown, who has been cool to the bill. Brown has said he wants stronger consumer protections before moving the legislation. Atkins said the SEC is “happy to provide technical input” on those provisions, adding that the agency’s rulemaking would include investor safeguards regardless of the legislative outcome.

The next milestone is a Senate committee markup, expected in early September. If the bill clears committee, floor time could be scheduled before the October recess. If it stalls, the SEC is likely to publish its proposed rules by November, according to a person familiar with the planning.

Internal links: CLARITY Act odds sink to 27% after Senate delays crypto bill | CLARITY Act delay risks US crypto lead, Haridopolos warns