Key facts
- SEC Chair Paul Atkins stated the agency's crypto rulemaking program, Project Crypto, will proceed regardless of the CLARITY Act's fate.
Securities and Exchange Commission Chair Paul Atkins stated that the agency's crypto rulemaking initiative, Project Crypto, will continue irrespective of the Senate's decision on the CLARITY Act. Atkins outlined three key pillars for the project, including rules for token founders, updates for transfer agents, and a proposal for investment advisers to self-custody crypto assets.
The SEC's commitment to advancing its own crypto rulemaking agenda, independent of legislative progress on the CLARITY Act, signals a shift towards agency-driven regulation in the U.S. crypto market. This dual-track approach means investors and crypto firms face a more defined, albeit potentially slower, regulatory path, impacting digital asset exposure and market structure.
SEC Chair Paul Atkins signaled on September 14 that the agency's comprehensive crypto rulemaking initiative, dubbed Project Crypto, will continue its course regardless of the outcome of the Senate's vote on the CLARITY Act. Speaking at the Solana Policy Institute summit, Atkins presented a dual-track message, indicating that while the SEC backs the CLARITY Act's progress, its own regulatory agenda is independent of legislative action.
Atkins detailed three core pillars of Project Crypto. The first, Regulation Crypto Assets, aims to modernize federal securities law by establishing clear rules for token founders seeking to raise capital in the U.S. The second pillar focuses on updating regulations for transfer agents, a critical infrastructure component for tokenized securities and on-chain funds that have seen minimal regulatory changes in approximately 40 years. The third, and most significant new detail, involves a proposal for SEC staff to develop rules allowing investment advisers to self-custody crypto assets when a qualified third-party custodian is not available, and also opens the door for state trust companies to serve as custodians. This addresses a key concern for registered investment advisers and fund managers hesitant about digital asset exposure.
The CLARITY Act faces a crucial cloture vote requiring 60 votes to proceed, a threshold that necessitates significant Democratic support given the Republican majority. Senator Cynthia Lummis has emphasized the importance of the vote, noting that Democrats have already agreed to over 100 amendments, including provisions for self-custody and retail investor offices, and that President Trump has agreed to ethics provisions. However, Senate Democrats are reportedly preparing a counterproposal, and opposition has been voiced by banking groups and New York state attorneys general.
This legislative uncertainty is precisely why Atkins' message resonated. Coinbase CEO Brian Armstrong had previously articulated a similar dual-path argument, suggesting regulatory clarity would emerge regardless of the CLARITY Act's passage. Atkins' speech serves as the SEC's official endorsement of this logic. Grayscale has also confirmed that crypto regulation is expected to advance irrespective of the CLARITY Act vote. This alignment among the SEC Chair, a major exchange CEO, and an institutional fund manager suggests that U.S. crypto market structure will be primarily shaped by agency-led rulemaking, with legislation acting as a potential accelerant rather than a prerequisite.