SEC Floats Three Rule Proposals That Could Redefine U.S. Crypto Regulation

CoinDesk reports the U.S. Securities and Exchange Commission is drafting three separate rule proposals aimed at crypto assets, crypto broker-dealers and overall crypto market structure. If adopted, the package would set out federal guardrails for how digital assets are issued and traded, and how regulated financial institutions can engage with them—an area the agency says has long lacked clear oversight. The proposals would address both issuance and secondary trading. One draft, listed under the SEC's institutional rule agenda, would focus on the issuance and sale of digital assets, including whether to create exemptions and "safe harbor" provisions. The SEC said the goal is to sharpen the regulatory framework and improve predictability for market participants. The approach also tracks the agency's recent discussion of an "innovation exemption." Under an earlier concept, qualified institutions could issue and trade tokenized U.S. stocks under defined conditions, offering a compliant route for certain new product designs. The SEC's work also extends to trading activity, broker-dealer supervision and DeFi. Earlier this year, the agency suggested that, under certain conditions, some decentralized finance platforms could operate without registering as broker-dealers. The commission is also soliciting public feedback on several proposed ETFs, including prediction market ETFs, signaling that the regulatory debate is widening beyond tokens to include trading vehicles and market infrastructure. SEC Chair Paul Atkins has framed the direction as an effort to keep more financial products within U.S. markets while giving crypto firms clearer rules for raising capital and tokenizing securities. Atkins has also tied the push to former President Donald Trump's stated goal of turning the United States into a global center for cryptocurrency. On Capitol Hill, negotiations continue on the CLARITY Act, a closely watched market-structure bill. The legislation did not pass ahead of the previously discussed July 4 deadline. Attention has shifted to Aug. 7, the final scheduled session day before the Senate begins its summer recess. Senate staff are working to reconcile versions produced by the Agriculture Committee and the Banking Committee, which split jurisdiction over different parts of digital asset policy. The bill has passed the House and cleared the Senate Banking Committee, and is now awaiting scheduling for a full Senate vote. Bloomberg Intelligence puts the odds of passage this month at about 60%. To advance, the measure would likely need 60 votes in the Senate, requiring Republicans to win support from some Democratic lawmakers.