FxWirePro-SEC Sets Crypto Backup Plan

SEC Chair Paul Atkins noted that he still favors letting Congress appropriate the CLARITY Act but said the SEC can move forward with writing regulations for the crypto market on its own if legislators fail to act. Thus, the statement from Atkins suggests that the SEC’s interest in the market was a contingency plan for getting regulation done, rather than an alternative to congressional action.

Atkins pointed out that the SEC is ready to assist Congress in deliberating on the details of the proposed legislation. He added that he and his colleagues believed that a statutory framework (developed by Congress) would provide more stability than a regulatory one (developed by regulators). Therefore, for the time being, the crypto market’s regulation seems to depend on Congress passing the CLARITY Act.

However, with the SEC’s regulatory push, crypto exchanges, tokens, and custodians will most likely have a stable legal status in the medium term. Yet another concern is whether the U.S. Congress will divide the regulatory powers over cryptocurrencies between the SEC and CFTC, or will the SEC retain exclusive control?