SEC Chairman Paul Atkins has said the U.S. Securities and Exchange Commission is prepared to create its own cryptocurrency regulations if Congress fails to pass the CLARITY Act.
Speaking to CNBC, Atkins said the SEC is “ready, willing and able” to address many of the issues covered by the legislation using its existing authority. However, he emphasized that passing a law remains the preferred solution because legislation provides a more permanent and stable framework.
Atkins also confirmed that the SEC is currently providing technical assistance to lawmakers as they continue working on crypto-related legislation.
While the SEC can create new rules for areas such as crypto fundraising, custody services, and the trading of tokenized securities, its authority has limits. The agency cannot independently grant the Commodity Futures Trading Commission (CFTC) broad authority over digital commodity spot markets, which is one of the key goals of the CLARITY Act.
In addition, SEC regulations can be changed or reversed by future administrations, while laws passed by Congress generally provide longer-term certainty.
The CLARITY Act is designed to establish a clearer regulatory framework for digital assets by dividing oversight responsibilities between the SEC and the CFTC. It also includes rules covering registration, disclosures, and customer protections for crypto companies.
The legislation has already cleared several congressional committees. The House of Representatives approved its version of the bill in 2025, and the Senate Banking Committee later advanced its own version. However, the full Senate has not yet voted on the measure.
Negotiations continue on several issues, including rules for stablecoin rewards and ethics requirements for public officials. These topics remain under discussion and have not been finalized.
If Congress does not approve the legislation, the SEC could move forward with rulemaking through the normal regulatory process, which includes publishing proposals, collecting public feedback, and issuing final rules.
Such regulations could provide more clarity for the crypto industry, but they would not fully replace the broader legal framework proposed by the CLARITY Act.
For now, both paths remain open: Congress can continue working toward legislation, while the SEC prepares potential regulatory actions using its existing powers. The next major development will likely come either from a Senate vote on the bill or from the release of new SEC rule proposals.
