SEC Chair Paul Atkins urges Congress to pass the CLARITY Act, calling for clear crypto rules as regulatory uncertainty grows.
The chair of the U.S. Securities and Exchange Commission has urged Congress to move quickly on crypto legislation, saying the current system is failing.
Paul Atkins said lawmakers must step forward and set clear rules for digital assets, as uncertainty continues to weigh on markets and regulators.
SEC Chair Calls for Congressional Action
Paul Atkins said it is “really crucial for Congress at this moment in time to step forward and come up with crypto legislation.”
He made the statement during a public appearance focused on financial regulation and market stability. The remarks marked a direct call for lawmakers to take responsibility for crypto rules.
The SEC chair acknowledged that the existing framework does not provide enough clarity for companies or investors.
He said regulation through court cases alone is not effective for a fast-growing sector. He also noted that prolonged uncertainty can harm confidence and orderly markets.
Atkins stressed that Congress, not regulators, has the authority to define the legal boundaries. He said agencies need clear laws to enforce, and firms need clear standards to follow.
Without legislation, disputes continue to be resolved through lawsuits.
Shift Away From Enforcement-First Regulation
The SEC has relied on enforcement actions for years to address crypto-related activity.
Many cases have focused on whether digital assets qualify as securities under existing laws. This approach has drawn criticism from both industry groups and some policymakers.
Atkins said uncertainty is now viewed as a risk rather than a safeguard. He noted that unclear rules can discourage compliance and investment.
He also said firms struggle to plan operations without knowing which agency has jurisdiction.
Regulators are signaling a preference for rules written by Congress. Clear laws would reduce reliance on courts to interpret decades-old statutes.
This shift reflects growing concern about legal fragmentation and inconsistent outcomes.
The CLARITY Act and Market Structure
The CLARITY Act is designed to define oversight for digital assets. It aims to set clear roles for the SEC and the Commodity Futures Trading Commission.
The bill also seeks to improve consumer protections. Supporters say the act would give institutions legal certainty to participate at scale.
Clear definitions could help banks, funds, and payment firms engage with digital assets. The focus is on structure rather than market prices.
Atkins said the issue is not about boosting asset values. He framed the effort as a need for stable rules and predictable oversight.
He also warned that delays could leave the United States behind other jurisdictions.
Related Reading: SEC Chair Says Crypto Bill Is Almost Law, Could Unlock Trillions in Capital
Pressure Builds as U.S. Lags Peers
Other regions have moved ahead with crypto frameworks. The European Union has adopted comprehensive digital asset rules.
Several Asian markets have also established licensing systems.
Atkins said the United States risks falling behind without action. He said regulatory gaps can push innovation offshore. This concern has been raised by lawmakers from both parties.
The SEC chair’s message to Congress was direct. Delay, he said, is no longer acceptable.
He urged lawmakers to provide clarity so regulators and markets can function within defined legal boundaries.
Source: https://www.livebitcoinnews.com/delay-is-no-longer-acceptable-sec-chair-pushes-congress-on-crypto-rules/
