SEC Prepared to Draft Crypto Rules if CLARITY Bill Stalls

SEC signals intent to create independent crypto regulatory framework if CLARITY Act fails in Congress, shifting from enforcement to formal rulemaking.

Woofun AI reports that the U.S. Securities and Exchange Commission is prepared to establish its own regulatory framework for cryptocurrencies should the CLARITY bill fail to pass through Congress. The agency aims to shift from enforcement-based actions toward formal rulemaking, potentially drafting its own rules if legislative action does not occur.

The CLARITY Act seeks to provide clear legal classifications for digital tokens, reducing ambiguity currently addressed through the Howey Test. If the bill stalls, the SEC’s contingency plan indicates a move toward self-drafted regulations, which could impact compliance costs and market predictability for exchanges and issuers.