The U.S. Securities and Exchange Commission will soon propose formal rules to codify its recent guidance on crypto asset classification, which designated most digital assets as non-securities. SEC Chair Paul Atkins announced the plan while noting the framework could still face judicial review. In related congressional progress, Senator Cynthia Lummis stated negotiations on the key stablecoin yield issue within the CLARITY Act are “99% of the way there.”
SEC Chairman Paul Atkins confirmed the agency will soon issue formally proposed rules for its recent crypto asset classification guidance. The interpretive guidance designated most crypto assets as non-securities, categorizing them into five distinct groups.
Atkins stated the agency would formalize the framework and create a regulatory sandbox for product experimentation. He cautioned that “the courts can deviate from that if they don’t like our rationale.”
The chairman described the SEC’s interpretation as a bridge while Congress works on the CLARITY Act. He added the agency would “shortly follow up with a proposed rule to put much more of this framework into effect.”
Separately, progress on the congressional crypto bill appears to be advancing. Following a Senate Republican meeting, Senator Cynthia Lummis was positive about the negotiations.
She termed the discussions productive and stated, “We’re 99% of the way there on stablecoin yield.” Market optimism on the bill’s passage improved slightly following these updates.
The chance of the CLARITY Act becoming law had previously dropped to nearly 50% in early March. The stalemate was primarily due to disagreements between the White House and the banking industry over stablecoin yields.
Regardless of the legislative outcome, the crypto industry may gain clearer operational rules through the SEC’s proposed rulemaking. The agency’s guidance already covers key topics being debated in the CLARITY Act.
