Written by Turner Wrightstaff writerReviewed by Robert Lakinstaff editor

Written by Turner Wrightstaff writer

Reviewed by Robert Lakinstaff editor

SEC proposes new crypto rules in absence of CLARITY Act

Latest NewsPublishedAug 18, 2026

The proposed rules from the US securities regulator would provide companies with a safe harbor from tokens being treated as“investment contracts” and certain exemptions for token issuance.

The US Securities and Exchange Commission (SEC) has proposed new rules that could affect the cryptocurrency industry after lawmakers in Congress failed to pass a market structure bill before breaking for a month-long recess.

In a Tuesday notice, the SEC stated that the agency proposed rules to create a “clear and fit-for-purpose framework for certain investment contracts involving crypto assets.” as reported by the regulator, the “tailored securities offering regime” would allow entities to raise capital while preserving investor protections.

The agency’s rules did not include an “innovation exemption” for crypto-based stocks, which had also been expected to be revealed. Notably, the proposed rules came just days after the US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, a bill expected to clarify the roles federal agencies would have in overseeing and regulating crypto. 

“[L]egislation remains indispensable to enacting ‘future-proofed’ rules of the road that are durable enough to protect the work we are undertaking today from being unwound by a future rogue regulator,” stated SEC Chair Paul Atkins. “The SEC has and will continue to support Congress in delivering the CLARITY Act to President Trump’s desk.”

as reported by the proposed rules, crypto companies would be offered exemptions allowing the issuance of up to $5 million in tokens during a four-year period and up to $75 million during a 12-month period, as well as a safe harbor exempting cryptocurrencies from being treated as ”investment contracts.” Token issuers would be required to make financial statements and “would be subject to ongoing reporting requirements.“

The public will have 60 days to comment on the proposal after publication in the Federal Register.

Related: CLARITY or not, crypto isn’t going back in the bottle: Bitwise

The SEC’s proposed rules in the absence of legislation from Congress came ahead of a scheduled Thursday meeting of the US Commodity Futures Trading Commission (CFTC) on crypto, AI and prediction markets. The commodities regulator stated it planned to address “areas where regulatory action can complement future congressional legislation.”

Atkins had been scheduled to speak at the Wyoming Blockchain Symposium on Tuesday, but canceled amid the SEC announcement. White House crypto adviser Patrick Witt stated at the event that US regulators would “let loose” on crypto regulation if Congress was unable to move forward on the CLARITY Act.

CLARITY’s chances before a new Congress is sworn in?

Before the Senate broke for its August state work periods, Majority Leader John Thune filed cloture on a motion to take up the CLARITY crypto bill when lawmakers return in mid-September.

Following the August recess, senators only have 14 days in session before breaking again ahead of the November election. If Thune and Republican lawmakers can’t get a floor vote before then, the Senate has another 22 days in session before 2027, when new members of Congress will be sworn in.

Magazine: Will the crypto lobby’s $189M campaign get CLARITY over the line?

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• Cryptocurrencies
• SEC
• CFTC
• Congress
• Law
• Regulation

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