SEC Chair Clarifies On-Chain Financing Rules

The Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, stated that although the CLARITY Act did not pass Congress, the SEC will still clarify on-chain financing rules within its statutory authority. The U.S. Senate failed to advance the CLARITY Act on September 15, with a vote of 49 to 50, not reaching the required 60-vote threshold. Atkins has not disclosed whether the relevant guidance will take the form of exemptions, registration pathways, or staff guidance. Previously, on September 17, the SEC paved the way for tokenized stocks and on September 25 released nine frequently asked questions explaining the implications of the commitments made by token issuers regarding securities classification. Commissioner Hester Peirce will leave office on October 2, leaving only Atkins and Mark Uyeda as the remaining commissioners at the SEC.