SEC Crypto Rules: 3 Possible Moves This Week as CLARITY Act Stalls

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.”