SEC Readies Crypto Rules as Clarity Act Stalls in Congress

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The SEC has signaled it will draft crypto rules if the Clarity Act fails, as the bill stalls in Congress. The Clarity Act passed the House in July 2025 and the Senate Banking Committee in May 2026 but remains stuck. Market odds for the bill’s passage in 2026 fell to 30.5% from 38% in one day. Meanwhile, the EU’s MiCA regulation moves forward, offering a contrast in regulatory approaches. CFT concerns also remain a focus in global crypto policy discussions.

The U.S. Securities and Exchange Commission (SEC) has announced its readiness to establish regulatory rules for cryptocurrencies should Congress fail to pass the Clarity Act. The Clarity Act, formally known as the Digital Asset Market Clarity Act of 2025, aims to delineate regulatory responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). While the House passed the bill in July 2025, and the Senate Banking Committee advanced it in May 2026, it has yet to be signed into law. The SEC’s statement suggests a potential increase in regulatory uncertainty, which may affect the likelihood of the Clarity Act’s passage this year.

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The announcement has had a notable impact on the prediction markets for the Clarity Act being signed into law in 2026. Current market odds have decreased to 30.5% from 38% just a day ago, reflecting growing skepticism about the bill’s prospects. The market appears to interpret the SEC’s proactive stance as an indicator that Congress might not act on the legislation in time, leading to a decrease in confidence that the Clarity Act will become law by year’s end.

Key Takeaways

  • The SEC’s readiness to draft crypto rules appears to suggest increased regulatory uncertainty.
  • Market odds for the Clarity Act being signed into law in 2026 have decreased, consistent with doubts about Congressional action.
  • The SEC’s position may indicate potential challenges for the Clarity Act amid ongoing legislative delays.

What to Watch

The next steps for the Clarity Act will be crucial. Market participants will be watching for any movement from the Senate, particularly actions from key figures like Senate Majority Leader Chuck Schumer and Senate Banking Committee Chairman Tim Scott. Developments such as committee votes or public statements from influential senators could be consistent with scenarios where the Clarity Act gains momentum. Conversely, further delays or negative indications from the White House or prominent legislators could reinforce the current market skepticism surrounding the bill’s passage.

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