SEC Chair Paul Atkins said the Securities and Exchange Commission is prepared to issue crypto market structure rules if Congress does not pass the CLARITY Act, even as Senate delays continue to narrow the bill’s 2026 timetable. The comments underscore a familiar split in crypto policy: lawmakers can set a durable framework, but regulators are already signaling they may have to fill the gap if the legislative route stalls.

SEC prepares a rulemaking backup plan

Atkins said the SEC is helping lawmakers with technical guidance as they review the digital asset market structure bill. He said congressional action remains the preferred path because a statute would provide regulators with clearer direction.

The SEC chair said, “We’re doing all we can to help them answer their questions and provide technical assistance. But ultimately, statute is the way to future-proof something.”

Atkins also said the agency can use its own rulemaking authority if the bill does not pass. He added, “We are ready, willing and able to come out with rules that address the same issues in clarity and in other aspects of the crypto market.”

The comments came as the CLARITY Act moved more slowly in the Senate. The bill has already passed the House, while Senate committees have examined market structure language covering crypto exchanges, brokers, tokens, and oversight responsibilities.

Senate delay pressures the timeline

Senate leaders have shifted attention to a Russia sanctions package and presidential nominees, leaving less floor time for crypto legislation before the August recess.

That delay has reduced expectations for a quick final vote. Polymarket traders cut the odds of the CLARITY Act becoming law in 2026 to 35%, down from a February high of 82%.

Crypto markets also reflected the slower timetable. Bitcoin fell below $65,000, while Ethereum dropped nearly 4% as traders reduced exposure during the July 28 market pullback.

Supporters of the bill say it needs to advance before the summer recess begins on August 7. They also argue that the upcoming midterm election cycle could make bipartisan crypto legislation harder to move later in the year, leaving a narrower window for compromise on market structure rules.

Senator Cynthia Lummis recently released a merged draft combining work from the Banking and Agriculture committees. The Banking Committee advanced the bill in May by a 15-9 vote.

Republicans would still need enough Democratic support to clear procedural hurdles. If Senate Majority Leader John Thune files cloture, backers may need about 10 Democratic votes to overcome a filibuster.

Ethics dispute remains central

The main disagreement centers on ethics rules tied to digital asset activity by senior government officials. The current draft would prohibit the president and other top officials from issuing digital assets for profit.

Some Senate Democrats say the language is not strong enough. They want broader restrictions covering immediate family members and other conflict-of-interest concerns related to crypto ventures.

New York Attorney General Letitia James has also raised concerns about state authority. She warned that the current bill could weaken state investor protection laws and limit fraud enforcement powers.

Atkins said the SEC still prefers legislation because a statute could provide the agency with a durable framework. He said, “But ultimately, we need the certainty of a statute that will help future proof so that we have clear direction and to go for.”

If Congress misses the 2026 window, crypto rulemaking could shift back toward regulators. The SEC and the Commodity Futures Trading Commission could move ahead with rules covering trading venues, token classifications, custody, disclosures, and market oversight.

Regulatory attention would also turn to the GENIUS Act, which already gives policymakers another path for stablecoin rules. The CLARITY Act remains the broader market structure bill, but Senate timing and ethics negotiations now determine whether it reaches a final vote this year.