SEC Prepares to Write Crypto Rules Before CLARITY Act Vote

The US Securities and Exchange Commission (SEC) is gearing up to write rules for the crypto industry, potentially before Congress votes on the CLARITY Act.

Three SEC proposals are scheduled for July, covering token offerings, broker-dealer custody, and trading venues. These rules would address how tokens are issued, how broker-dealers can custody them, and where they can be traded.

The SEC's Division of Corporation Finance is weighing new rules for digital assets to be offered and sold, which could include exemptions and safe harbors designed to clarify the regulatory framework and protect investors. However, the legal authority for these proposals has not been determined, which could become a point of attack if the SEC tries to build a broad offering framework without clearer authority.

If the SEC publishes one of its July proposals first, it would give issuers, broker-dealers, and trading venues a concrete rulemaking process to respond to while the broader market-structure bill remains unresolved. The debate would shift from Capitol Hill into SEC rulemaking, giving industry groups a chance to argue for broader exemptions and more workable custody and trading rules.