The US Securities and Exchange Commission (SEC) has unveiled a proposed framework aimed at clarifying regulatory oversight for certain investment contracts involving crypto assets, following criticism of its previous enforcement-heavy approach. The move, outlined in a notice issued on Tuesday, seeks to establish a “clear and fit-for-purpose” regulatory structure, with Commissioner Hester M. Peirce describing it as a step forward from “inapt” rules that have hindered industry growth.
SEC Chairman Paul S. Atkins acknowledged that the agency’s prior focus on enforcement had driven investment offshore, complicating efforts to protect retail investors. The proposal comes after the US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, with Galaxy Digital reducing its estimate of the bill’s chances of passing in 2026 to 10%. The firm warned unresolved political issues could further delay legislative progress.
The Senate is set to reconvene on September 14, though the likelihood of passing the CLARITY Act within weeks remains uncertain. Meanwhile, the SEC’s new rules have yet to address key questions about their impact on market innovation and investor protections. Analysts note the proposal may mark a shift toward a more balanced approach, but its long-term effectiveness will depend on implementation and congressional action.
Written by Steven Cook
Regulation Desk
