SEC Ready to Act Alone if CLARITY Act Fails, Says Chair Paul Atkins

The U.S. Securities and Exchange Commission is no longer waiting on Congress. SEC Chair Paul Atkins said the agency is “ready, willing and able” to create crypto rules on its own if lawmakers fail to pass the long awaited CLARITY Act. 

The statement comes as the bill has recently faced delays in the Senate and is now just weeks away from the August summer break.

SEC Can Move Ahead Without Congress With “Regulation Crypto” Plan

Speaking in an interview, Paul Atkins said the SEC can move ahead with rulemaking under its existing powers if Congress remains deadlocked.

Atkins said, “We need the certainty of a statute that will help future-proof so that we have clear direction to go forward.” 

However, he added that if the CLARITY Act stalls, the SEC is prepared to write crypto rules itself.

The initiative, informally called “Regulation Crypto,” would mark a major shift from the SEC’s earlier enforcement-driven approach. Instead of relying on lawsuits, the agency would publish formal rules covering key areas of the crypto market.

According to the SEC’s current agenda, the framework could include:

• Registration exemptions for token launches
• Safe harbor rules for projects becoming decentralized
• Crypto custody standards for broker-dealers
• Rules for crypto trading platforms and market structures

Why the CLARITY Act Is Stuck

The CLARITY Act has made progress but remains stalled in the Senate. The bill passed the House with a 294-134 vote and cleared the Senate Banking Committee by 15-9 in May. 

However, it still needs at least 60 votes in the Senate and has not reached the floor. Several issues are slowing negotiations, which is impacting the Clarity Act. 

Senate Majority Leader John Thune has already suggested the bill may not pass before lawmakers leave for summer break.

Sen. Cynthia Lummis also warned that if negotiators fail to reach an agreement before Aug. 7, 2026, the bill may effectively be delayed until 2027.

Clarity Act At the Deadline

Prediction markets have already reacted to the uncertainty. The odds of the CLARITY Act passing in 2026 dropped from 36% to 27.5% after Atkins’ comments.

If Congress misses the August deadline, the SEC could begin releasing draft crypto rules later this year.