Bitwise CIO Matt Hougan says the SEC could move ahead with crypto rules even while the CLARITY Act remains stuck in Congress, potentially giving the industry a faster route toward regulatory clarity.
The timeline is now more concrete than initially expected. The SEC has scheduled an open meeting for August 14 to consider proposing its first formal “Regulation Crypto” framework for certain digital-asset offerings.
Scenario 1: SEC Moves Ahead With Regulation Crypto
The biggest development could be the SEC formally proposing Regulation Crypto this week.
Hougan described the approach as a “bypass road” around the CLARITY Act, arguing that Congress needs legislation for CLARITY, while the SEC can use its existing authority to create rules and exemptions.
The proposed framework could give new crypto projects a pathway to raise capital without immediately triggering full securities registration, followed by a transition toward more decentralized networks.
The idea goes back to the 2018 ICO era, when crypto projects struggled to raise funds while navigating securities laws. Hougan believes clearer rules could unleash a new wave of innovation, saying there could be “a million flowers that bloom.”
But Friday’s action would only start the process. A proposal would still go through public comments and further regulatory steps before becoming final.
Scenario 2: Tokenized Securities Get a New Path
A second possibility is progress on an innovation exemption for tokenized securities.
The SEC is considering ways to make digital versions of traditional securities easier to issue and trade on blockchain networks. That could eventually support 24/7 trading of tokenized stocks and bring parts of traditional equity markets onto blockchain infrastructure.
This fits into Chairman Paul Atkins’ Project Crypto agenda, which has focused on rulemaking, exemptions and clearer digital-asset classifications rather than relying primarily on enforcement.
The SEC is also coordinating with the CFTC on how different crypto assets should be classified.




