As momentum in Washington around the proposed CLARITY Act slows, US Securities and Exchange Commission (SEC) Chair Paul Atkins outlined how the agency intends to proceed with crypto regulation, despite congressional delays, at a public appearance this Wednesday at ETH Denver.
Speaking alongside Commissioner Hester Peirce, a longtime advocate for clearer crypto rules, Atkins signaled that the regulator is preparing a broad regulatory push in the months ahead.
SEC Details 2026 Crypto Agenda
Responding to a question about what the industry can expect this year, Atkins said the SEC will continue coordinating with lawmakers while advancing its own agenda through “Project Crypto,” an initiative that is now being jointly carried out with the Commodity Futures Trading Commission (CFTC).
Atkins said the Commission and staff are preparing several initiatives for consideration in the near term. Among them is a formal framework explaining how the SEC determines when a crypto asset involves an investment contract, including how such a contract is created and under what circumstances it may cease to exist.
He also previewed an “innovation exemption” designed to allow limited trading of certain tokenized securities on new types of platforms, with the broader goal of shaping a durable regulatory structure over time.
The agency is also developing a rule proposal intended to create what Atkins called “common-sense” avenues for raising capital through crypto asset sales.
In addition, the SEC plans to issue no-action letters and exemptive orders to provide greater certainty to market participants, including guidance for digital wallets and other user interfaces that may not fall under registration requirements of the Securities Exchange Act.
Custody rules are another priority. Atkins said the SEC is working on rulemaking related to how broker-dealers may safeguard non-security crypto assets, including payment stablecoins.
The Commission is also preparing updates to transfer agent regulations to reflect the growing role blockchain technology can play in maintaining ownership records.
Clear Rules Over Panic
The SEC chair also addressed recent declines in crypto prices, pushing back against the idea that regulators should respond to market downturns. He emphasized that it is not the role of the Commission to react to daily price movements.
Instead, he said, the agency’s responsibility is to ensure investors receive adequate disclosures so they can make informed decisions. Markets, he noted, fluctuate across asset classes, whether stocks, commodities, or digital assets.
Regulators, in his view, should focus on maintaining clear and functional rules that allow investors to decide for themselves whether to buy, sell, or hold.
Lastly, Atkins reiterated that the Commission must continue clarifying how tokenized securities fit within the existing regulatory framework and how intermediaries can trade and custody them for clients.
He stressed that progress will require collaboration and welcomed input from across the spectrum, including critics of the crypto industry.
Featured image from OpenArt, chart from TradingView.com
