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SEC Sets Crypto Rules as Senate Stalls on CLARITY Act
The SEC proposed new crypto guidelines after the Senate stalled on the CLARITY Act. Galaxy Digital cut the bill's passage probability to 10%. The Senate reconvenes September 14.
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The SEC moved ahead on its own. With the Senate stalled on the Digital Asset Market Clarity Act – the CLARITY Act – the agency released proposed guidelines for crypto asset investment contracts. The move aims to replace an approach Chairman Paul S. Atkins called outdated and enforcement-heavy, one he said pushed investment offshore and left domestic investors with weaker protections.
Commissioner Hester Peirce backed the proposal quickly. Peirce, known in crypto circles as "Crypto Mom," has pushed for workable digital asset rules for years, often as a dissenting voice inside the agency. She said the industry has struggled under rules never designed for digital assets. Her read on the new guidelines: a real step toward practical, enforceable standards rather than more regulation by enforcement.
Galaxy Digital put a probability on the legislative path. The firm cut its estimate for the CLARITY Act passing in 2026 to 10%. That's not a rounding error. Galaxy cited two reasons: unresolved political issues and a shrinking legislative window. The Senate does not reconvene until September 14, leaving limited time to push a complex crypto bill through before the calendar runs out. Even with fresh energy, the math is hard.
The CLARITY Act was meant to be the comprehensive answer – a full framework for how digital assets get classified, traded, and overseen. Without it, there is a hole. The SEC's proposal is an attempt to patch that hole from the agency's side.