SEC Chair Says Crypto Rules Move Forward No Matter What Senate Decides

TLDR

• SEC Chair Paul Atkins backed Tuesday’s CLARITY Act cloture vote but said Project Crypto rulemaking will continue no matter the Senate result.
• Atkins outlined three rulemaking tracks: Regulation Crypto Assets, updated transfer-agent rules, and a self-custody proposal for investment advisers.
• The cloture vote needs 60 votes, meaning at least seven Democrats must vote yes for it to move forward.
• Banking groups and New York attorneys general have filed formal opposition to the bill.
• Coinbase CEO Brian Armstrong and Grayscale have made the same point as Atkins, that crypto regulation will advance either way.

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SEC Chairman Paul Atkins spoke at the Solana Policy Institute summit on September 14. He gave a keynote speech that touched on both the CLARITY Act and the agency’s own rulemaking plans.

Atkins said he supports the CLARITY Act cloture vote scheduled for Tuesday. But he also made clear that the SEC’s Project Crypto initiative will keep moving no matter what happens in the Senate.

This message gives investors two paths to watch instead of one. The Senate vote is no longer the only event that matters for crypto regulation.

Three Rulemaking Tracks Under Project Crypto

Atkins laid out three specific rulemaking efforts happening under Project Crypto. These will continue regardless of the Senate outcome.

The first is called Regulation Crypto Assets. Atkins described it as one of the biggest updates to federal securities law in years. If it passes, token creators could raise money in the United States under clear rules.

The second focuses on transfer agents. Atkins said these rules have not been updated in about 40 years. This matters for tokenized securities and on-chain funds, an area where firms like ARK, BlackRock, and Fidelity are already competing.

The third track is new. Atkins said he asked SEC staff to write a proposal that would let investment advisers hold their own crypto when no qualified outside custodian is available. He also opened the door for state trust companies to serve as custodians. This could remove a barrier that has kept many advisers and fund managers away from digital assets.

Senate Vote Faces A Tough Math Problem

The cloture vote needs 60 votes to pass. Republicans control 53 Senate seats. That means at least seven Democrats need to vote yes.

A yes vote only opens debate. It does not mean the bill becomes law.

Senator Cynthia Lummis has called this a now-or-never moment. She said Democrats already won more than 100 changes to the bill’s text, including self-custody protections and a new office for retail investors.

Her comments came after President Trump agreed to ethics provisions in the bill covering elected officials and their spouses.

Despite these changes, Senate Democrats are working on a separate counterproposal. Banking groups and attorneys general from New York have also filed formal opposition to the bill.

This is the backdrop for why Atkins gave his speech. Coinbase CEO Brian Armstrong made a similar point just days earlier. He said regulatory clarity for crypto will happen with or without the CLARITY Act passing the Senate.

Atkins’ speech confirms that the SEC agrees with that view. Grayscale has also said crypto regulation will move forward no matter how the Senate vote turns out.

Three major voices, the SEC chief, a top exchange CEO, and a large asset manager, are now saying the same thing. Crypto market rules in the United States are being shaped by agency action, not just by Congress.

Project Crypto’s rulemaking calendar does not stop for a Senate vote. Atkins said that plainly in his speech. The legislative process and the regulatory process are now running side by side, and both are expected to keep moving through the rest of the year.

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Source: https://blockonomi.com/sec-chair-says-crypto-rules-move-forward-no-matter-what-senate-decides/