SEC proposes formal crypto rules after Senate stalls CLARITY Act. Framework would let projects raise capital without full registration, with notice-and-comment process to follow.
The SEC is preparing to propose a formal rule framework for certain crypto investment contracts after the Senate failed to advance the CLARITY Act before its August recess, according to agency officials.
The commission called an open meeting for August 14 to consider releasing proposed rules for public comment. The framework, which officials are calling "Regulation Crypto" internally, would create a structured route for digital asset projects to raise capital without triggering full SEC registration requirements, the officials said.
The proposal would also establish a path for projects to move outside SEC jurisdiction once they are no longer under active management, and would create exemptions or safe harbors for eligible offerings. It builds on the SEC and CFTC's March interpretation that categorized different types of crypto assets and explained when an asset can separate from an investment contract.
Approval at Friday's meeting does not mean the rules take effect immediately. If the proposal passes, it enters the traditional notice-and-comment process, followed by economic analysis, public feedback, possible revisions, and a final separate vote. SEC rulemakings have historically taken 12 to 18 months. Interim measures could move faster, the officials said.
White House crypto official Patrick Witt said the administration remains "fully committed" to passing the legislation next month. TD Cowen analyst Jaret Seiberg described the SEC proposal as the first of several rulemakings expected to provide greater certainty for crypto markets after the Senate delay.
SEC Chairman Paul Atkins has said formal rules are needed because earlier policy statements do not provide the same long-term certainty. A finalized rule would be harder to reverse than informal guidance.
The SEC is also working with the CFTC on a crypto asset taxonomy and developing its approach to tokenized securities. The CFTC's Innovation Advisory Committee holds its first meeting on August 20 with members including Coinbase, Ripple, Robinhood, Kraken, Gemini, Polymarket, Kalshi, CME and Nasdaq.
For now the SEC initiative and CLARITY Act are moving on separate tracks. Congress could still provide a broader statutory framework while the SEC fills regulatory gaps through formal rulemaking.
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