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The SEC is meeting August 14. On the table: a proposal that could fundamentally change how crypto companies raise money in the U.S.
The proposal, called Regulation Crypto, would let digital asset firms raise capital without going through full securities registration. That’s a big deal. Right now, the registration process is expensive, slow, and built for a world where tokens didn’t exist. Startups have been routing around it for years — raising offshore, structuring around exemptions, or just taking the legal risk. If Regulation Crypto passes, some of that pressure goes away. The framework would also allow tokens to stop being treated as securities once their underlying networks reach a certain level of decentralization. Unclear yet exactly what threshold qualifies, but the concept itself has been floating around crypto legal circles for years. SEC Chair Paul Atkins has separately floated an “innovation exemption” that could let tokenized stocks trade around the clock on blockchain platforms — basically 24/7 equity markets, which traditional exchanges can’t offer.
None of this is final. But the direction is pretty clear.
The CLARITY Act Is Going Nowhere Fast
Meanwhile, the legislative route is stuck. The Digital Asset Market Clarity Act passed the House but hasn’t gotten a Senate floor vote. Senate Majority Leader John Thune filed a procedural motion to advance it, but that motion needs 60 votes just to end debate — and that’s before any vote on the bill itself. The Senate comes back September 14, which leaves a narrow window before midterm pressure swamps everything. Probably not enough time to move a complex, contested bill.
The CLARITY Act’s core idea is a split: the SEC handles securities, the CFTC handles commodities. Bitcoin and ethereum would fall under CFTC jurisdiction as commodities. Everything else — tokens that look more like investment contracts — stays with the SEC. For exchanges and token issuers, that kind of clarity would be genuinely valuable. Right now, nobody knows for certain which regulator is coming for them or under what theory.
The bill also includes ethics rules for public officials involved in crypto and protections for software developers. Those provisions are contentious. They’ve slowed things down.
CFTC Chairman Michael Selig said his agency is ready to move on rulemaking regardless of whether the CLARITY Act passes. That’s notable. It means the CFTC isn’t waiting on Congress. Both agencies are already working together on something called Project Crypto, which is focused on sorting out which regulator has jurisdiction over which assets and platforms. It’s basically a bureaucratic map-drawing exercise — and it matters a lot for anyone operating in the space.
Banks Are Nervous, Fintechs Are Ready
One fight that’s gotten less attention: crypto reward programs. Banks are worried that yield-bearing crypto products could pull deposits away from conventional savings accounts. It’s not a crazy fear — if someone can earn more holding a stablecoin or a tokenized deposit product than sitting in a checking account, some people will move money. Traditional institutions have been lobbying hard against these products. Fintechs, on the other hand, want in. They see demand and they’re positioned to move fast.
That tension doesn’t get resolved by either the SEC vote or the CLARITY Act directly. But the regulatory environment shapes it. If Regulation Crypto passes and the overall framework loosens, fintech firms have more room to build these products. Banks know that.
For crypto startups specifically, the SEC vote on August 14 is probably the more immediate thing to watch. A cheaper, cleaner domestic fundraising path would reduce the incentive to go offshore. It wouldn’t eliminate it — other jurisdictions still offer things the U.S. doesn’t — but it changes the math. Investors could also eventually benefit from trading stock-linked tokens outside standard market hours, if Atkins’ innovation exemption idea gets any traction.
Broader context: the SEC has taken heat for years for being slow and enforcement-heavy on crypto. Regulation Crypto, if it moves forward, would be a real shift — not just a tweak. Whether it actually passes the full commission vote on August 14, and in what form, is still an open question.
The CFTC and SEC are both moving. Congress is stuck. And the industry is watching August 14.
Frequently Asked Questions
What is Regulation Crypto and what would it change?
Regulation Crypto is an SEC proposal that would let crypto companies raise capital without full securities registration, and would allow tokens to shed their securities classification once their networks become sufficiently decentralized.
What is the CLARITY Act and why is it stalled?
The CLARITY Act would split crypto oversight between the SEC and CFTC, with bitcoin and ethereum classified as CFTC-regulated commodities. It passed the House but hasn’t gotten a Senate floor vote, with a procedural motion requiring 60 votes and limited legislative time before midterms.
