With congressional momentum behind the CLARITY Act stalling, SEC Chair Paul Atkins used a high-profile appearance at ETH Denver to lay out how the agency will press ahead on crypto oversight — with or without a new law. Speaking alongside Commissioner Hester Peirce, a longtime advocate for clearer crypto rules, Atkins said the SEC will push a slate of regulatory actions in the months ahead under the umbrella of “Project Crypto,” now a joint effort with the CFTC. What to expect Atkins promised a mix of rulemaking, guidance and targeted relief aimed at bringing greater legal certainty to token markets. Key initiatives he said are being prepared for near-term consideration include: - A formal framework for deciding when a crypto asset constitutes an investment contract — clarifying how longstanding tests used for securities apply to tokens and when those characteristics may end. - An “innovation exemption” to permit limited trading of certain tokenized securities on new platform types, intended as a bridge while a durable regulatory regime is developed. - A rule proposal to create “common-sense” avenues for raising capital through crypto-asset sales. - Increased use of no-action letters and exemptive orders to give market participants clearer, case-specific relief — including guidance around digital wallets and user interfaces that may not trigger Securities Exchange Act registration. - Custody-focused rulemaking to define how broker-dealers can safeguard non-security crypto assets, including payment stablecoins. - Updates to transfer-agent regulations to account for blockchain-based approaches to maintaining ownership records. Atkins pushed back on calls for regulators to react to price swings, saying it’s not the SEC’s role to respond to daily market movements. Instead, he emphasized disclosure and durable rules so investors can make informed choices as markets — in stocks, commodities or crypto — rise and fall. Cross-agency coordination and industry input By pairing Project Crypto with the CFTC and signaling a heavy use of rulemaking plus targeted exemptions and letters, the SEC appears to be preparing a proactive regulatory roadmap even as Congress lags. Atkins stressed the importance of collaboration and invited input from across the spectrum, including critics, as the agency works to clarify how tokenized securities fit into the existing framework and how intermediaries can trade and custody them. That approach aims to reduce legal gray areas that have complicated market participation and innovation — while keeping the SEC’s focus on investor protection and clear, functional rules. Read more AI-generated news on: undefined/news

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