The US Securities and Exchange Commission's (SEC) formal crypto rule proposal marks a major pivot from an enforcement-first approach toward a structured compliance model, filling a regulatory vacuum as congressional action on the CLARITY Act stalls. The framework offers projects a path to raise capital under defined disclosure requirements before transitioning to a decentralized status once central management is no longer driving value. While questions around custody and open-ledger mechanics re
**The US Securities and Exchange Commission's (SEC) formal crypto rule proposal marks a major pivot from an enforcement-first approach toward a structured compliance model, filling a regulatory vacuum as congressional action on the CLARITY Act stalls. **
The framework offers projects a path to raise capital under defined disclosure requirements before transitioning to a decentralized status once central management is no longer driving value.
While questions around custody and open-ledger mechanics remain unresolved, the proposal gives startups a route to fundraise and build without facing immediate, costly SEC enforcement battles.
According to Ashley Ebersole, co-founder and chief legal officer at real-world asset tokenization platform tx, the SEC likely waited because Congress was expected to act first through the CLARITY Act.
But as the year moved on, the odds of legislation passing quickly dropped.
That matters because legislation is more durable than regulation. A law passed by Congress can only be undone through another act of Congress and a presidential signature. A rule written by an agency is easier to reverse under a future administration.
For now, the big question is whether Congress acts in time, or whether the SEC’s rules become the main roadmap for the next phase of crypto regulation.
Listen to the full interview to hear more from Ebersole on the SEC and CLARITY Act.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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