U.S. Securities and Exchange Commission Chair Paul Atkins said the regulator is prepared to write crypto market rules if Congress fails to pass the CLARITY Act, offering an agency-led fallback as Senate negotiations continue.
Summary
- SEC Chair Paul Atkins says agency rules could proceed if Congress fails to pass CLARITY.
- Senate Banking advanced the bill 15-9, but the full Senate has not voted on it.
- Agency rulemaking cannot independently grant the CFTC statutory authority over digital commodity spot markets nationwide.
Atkins told CNBC that the SEC was “ready, willing and able” to address issues covered by the bill through its existing authority. However, he said legislation remained the preferred route because “statute is the way to future-proof something.” His comments describe the agency’s intended approach rather than a completed rulemaking action.
On July 28, Atkins also said publicly that the SEC was providing Congress with technical assistance as lawmakers worked on the legislation.
SEC can act, but it cannot replace Congress
The SEC has already placed several crypto initiatives on its 2026 regulatory agenda. Atkins said the agency intends to create clearer rules for crypto fundraising, custody and the trading of tokenized securities onchain.
However, the SEC is considering proposals covering crypto assets, broker-dealers and market structure. Those projects could clarify token offerings, financial responsibility requirements and trading through securities exchanges or alternative trading systems.
However, agency rules have limits. The SEC cannot independently give the Commodity Futures Trading Commission broad statutory authority over digital commodity spot markets. It also cannot permanently stop a future SEC administration from revising or withdrawing regulations.
Atkins acknowledged that distinction in earlier remarks, saying notice-and-comment rules could strengthen the SEC’s approach but that legislation offered the strongest protection against future policy reversals.
CLARITY Act has cleared committees but not the Senate
The House passed the Digital Asset Market Clarity Act in July 2025 by a 294-134 vote. The Senate Agriculture Committee later advanced its Digital Commodity Intermediaries Act in January 2026, proposing a CFTC registration system for digital commodity trading platforms.
Meanwhile, the Senate Banking Committee approved its version of the CLARITY Act by a 15-9 vote on May 14. The committee said the legislation would divide oversight between the SEC and CFTC while creating disclosure, registration and customer-protection rules.
Sen. Cynthia Lummis released updated legislation on July 22 that merged work from both Senate committees. She described the coming weeks as potentially the “last real chance” to pass the framework for several years. That statement reflects her political assessment, not a formal legislative deadline.
As of July 30, the full Senate had not voted on the merged bill. It would still need sufficient support to overcome procedural hurdles, pass the chamber and reconcile any differences with the House-approved text.
Negotiations have continued over ethics rules for elected officials and restrictions on rewards paid to stablecoin holders. Banking groups argue that interest-like stablecoin products could draw deposits away from traditional lenders, while crypto companies say broad limits could restrict lawful customer rewards.
Neither position has become final law. The updated Senate materials include separate sections addressing stablecoin interest and ethics, showing that both subjects remain part of the negotiations.
In addition, CLARITY Act passage odds fell to 27% on Polymarket on July 29 as traders reacted to the delayed Senate timetable. That figure represents prediction-market pricing and does not provide an independent forecast of congressional action.
What happens if Congress does not act
The SEC could publish proposed rules under the Administrative Procedure Act. The process would normally include public comments, commission consideration and possible revisions before any final rule takes effect.
Such rules could provide clearer treatment for token issuance, registered intermediaries and securities trading. However, they would not create the full SEC-CFTC division of authority proposed by the CLARITY Act.
Congress may still take up the merged legislation later in 2026. Until a floor vote is scheduled, the SEC’s regulatory agenda will continue moving separately from the bill.
No verified cryptocurrency price movement can be attributed solely to Atkins’s comments. The next confirmed developments will depend on either formal Senate floor action or the publication of SEC rule proposals.
