SEC to Advance Crypto Rules Whether CLARITY Act Passes or Fails
SEC Chair Paul Atkins said the agency will continue its crypto regulatory programme regardless of whether the US Senate passes the CLARITY Act. Speaking at a Solana Policy Institute event, Atkins urged lawmakers to approve the bill but said the SEC would deliver results with or without new legislation.
Under Project Crypto, the SEC is developing three regulatory pillars: a new Regulation Crypto Assets framework for digital-asset issuance, updated transfer-agent rules that recognise blockchain ownership records, and clearer crypto custody rules. The proposed custody changes could allow investment advisers to self-custody assets under certain conditions or use state-chartered trust companies.
The CLARITY Act faces opposition from eight banking groups, which want tighter limits on stablecoin interest and rewards, and 18 state attorneys general, who say the bill could weaken their authority to investigate crypto fraud. Polymarket odds that the bill will pass in 2026 fell from 30% to 17%.
For crypto traders, the CLARITY Act remains an important market catalyst, but the SEC’s parallel rulemaking reduces reliance on congressional action. Clearer issuance, custody and tokenised-securities infrastructure could support long-term institutional adoption. However, near-term uncertainty around the Senate vote may increase volatility across crypto and blockchain-related assets.
Neutral
The immediate market impact is neutral because the announcement contains both supportive and restrictive signals. A clearer SEC framework for digital-asset issuance, custody and transfer agents could reduce legal uncertainty and support institutional participation over the long term. This may benefit major crypto infrastructure providers and tokenised-asset markets.
However, the CLARITY Act still faces a difficult Senate vote, banking-sector opposition and concerns from state attorneys general. The decline in Polymarket’s estimated 2026 passage probability from 30% to 17% signals growing political uncertainty. Traders may therefore treat the news as a mixed catalyst rather than a clear bullish event.
In the short term, assets linked to US crypto regulation could see headline-driven volatility, especially around the cloture vote. A failed vote may trigger disappointment and short-term selling, while meaningful legislative progress could support a relief rally. Over the longer term, SEC rulemaking may continue even if Congress stalls, creating a gradual, more predictable compliance environment. Similar regulatory-clarity announcements have often supported institutional sentiment, but enforcement risk and delays have limited immediate price gains. Traders should monitor the Senate vote, SEC rule proposals, stablecoin provisions and custody guidance.