The Clarity Act is dying, and the SEC just built its replacement

The Senate will not vote on crypto market structure legislation before September. Meanwhile, the SEC is voting on a 400-page rulemaking framework that does much of what Congress promised. Here is why rulemaking may matter more than legislation now. Summary The U.S. Senate adjourned for August recess without voting on the CLARITY Act, pushing the bill to a September 14 return window with only three working weeks left in the session. Polymarket odds for passage in 2026 have collapsed from 82% to roughly 16%. The SEC will hold an open meeting on August 14 at 10 a.m. ET to vote on publishing “Regulation Crypto,” a proposed rulemaking framework covering crypto asset offerings. The vote requires only a simple majority of Commissioners Paul Atkins, Hester Peirce, and Mark Uyeda. Regulation Crypto creates three legal pathways for token projects: a startup exemption allowing raises up to $5 million, a fundraising exemption allowing up to $75 million per year with audited financials, and an investment contract safe harbor that lets sufficiently decentralized tokens exit securities classification entirely. The framework does not resolve the foundational jurisdictional question that the CLARIT...