SEC Issues an Ultimatum to Congress

The SEC is losing patience with Congress. The Commission has announced that if the CLARITY Act stalls in the Senate, it will develop its own regulatory framework for the cryptocurrency market. Fewer than four days remain until the scheduled vote.

The bill may face delays caused by the country’s largest banks. According to reports, banking industry representatives are lobbying intensively to weaken the legislation or prevent it from passing altogether. The SEC’s warning puts additional pressure on senators and shows that the Commission is not prepared to wait indefinitely for Congress to act.

If the bill fails to pass, the regulator intends to move forward independently. The market could therefore receive a new set of rules even without a political agreement. However, such a scenario would create even greater uncertainty around the regulatory process.

Meanwhile, major US financial institutions are becoming increasingly involved in blockchain technology. Morgan Stanley has launched spot exchange-traded products based on Ethereum and Solana. Bitcoin ETPs have been available in the United States since early 2024, and the new products expand the offering beyond the world’s largest cryptocurrency.

BNY Mellon is moving part of its fund record-keeping infrastructure onto the blockchain. The 240-year-old bank is testing the technology within its own operational systems. The total value of real-world assets recorded on blockchain networks exceeded $20 billion this week.

Many companies in the cryptocurrency industry are primarily calling for clear and lasting regulations. They do not want a return to the period when the SEC, led by Gary Gensler, repeatedly sued crypto businesses and hindered innovation. The industry needs rules that will not change every few years whenever a new administration takes office and adopts a different approach to the digital asset market.