Compass Investments

– The SECs rulemaking process can move forward without the passage of new legislation.

The agencys rules cannot replace legislation governing market structure.

In September, the Senate coalition supporting the CLARITY bill will face a test of its strength.

The delay gives regulators additional room to maneuver.

The Securities and Exchange Commission (SEC) intends to review a proposal regarding cryptocurrency offerings this week, while the CLARITY bill is expected to hit a roadblock in a couple of weeks: it will need to secure 60 votes in the Senate. This timeline illustrates how far regulatory work can go while lawmakers continue to debate broader market structures.

In an August 10 notice issued under the Sunshine Act (Sunshine Act), it was stated that the SEC will meet on August 14 to discuss issuing a proposal to establish a special offering regime for certain investment contracts related to crypto assets.

The final rule will not be approved at this meeting. If the Commission issues a positive decision, the process of developing regulations on how certain crypto offerings can operate under securities law will begin.

For issuers, this could resolve a long-standing practical dilemma: which requirements apply when a crypto transaction falls under SEC securities regulation.

This proposal would still leave most of the market unchanged. Questions about the boundaries of SEC and CFTC oversight, the regulatory framework for digital assets outside the scope of securities, and rules covering broader crypto market activities require solutions that go beyond the regulation of individual offerings.

These jurisdictional limitations also explain why legislation remains more significant in the long run. Agency rules are based on authority already granted by Congress and can subsequently be challenged, revised, or redefined. A law on market structure could first establish a basic division of responsibilities and then provide regulators with the flexibility to develop rules within that framework. , “detected_source_language “: “EN

“”,”detected_source_language”:”RU

The SEC has previously acknowledged this connection. Earlier this year, Chairman Paul Atkins referred to the SEC and CFTCs joint guidance on cryptocurrencies as a bridge while Congress continues to work on market-structure legislation.

The August 14 hearing demonstrates that the agency continues to build its part of this bridge until lawmakers agree on a broader framework.

Once the SEC hearing concludes, attention will shift back to Congress.

Patrick Witt, executive director of the Presidential Advisory Council on Digital Assets, said Tuesday that the administration remains firmly committed to passing the CLARITY Act in September and will continue negotiations with Democrats right up until the September vote, while adding a caveat: We also cant wait forever.

The pressure comes down to Senate arithmetic.

The administration is fully focused on passing the CLARITY Act in September. Stable ruleswhich only legislation can provideare needed now more than ever.

The vote to end debate, scheduled for mid-September, will require 60 votes to bring the bill to a final vote. Therefore, Republicans still need Democratic support, and the coming weeks will be a test of whether negotiators can translate broad bipartisan interest in crypto legislation into sufficient consensus on the bill itself.

Witt accused Democrats of repeated delays and stated that, as a result, the U.S. is losing ground in the digital assets sector. This is the political rationale behind the administrative urgency. The practical challenge, however, is that passing the CLARITY bill still requires a broader coalition than the White House and Senate Republicans can secure on their own.

“,”detected_source_language”:”RU