SEC Chairman Paul Atkins delivered a dual-track message to the crypto industry on September 14 at the Solana Policy Institute summit. He backed the CLARITY Act cloture vote scheduled for Tuesday while simultaneously signaling that the SEC's Project Crypto initiative will continue advancing regardless of the Senate's decision.
Atkins outlined three concrete rulemaking tracks under Project Crypto that will proceed independently of legislative action. The first is Regulation Crypto Assets, which would allow token founders to raise capital in the United States under clearly defined rules. The second addresses transfer agent rules, which Atkins noted have not been substantially updated in approximately 40 years. He characterized this as essential infrastructure for tokenized securities and on-chain funds.
The third initiative represents a significant development: Atkins said he has directed SEC staff to develop a proposal permitting investment advisers to self-custody crypto when qualified third-party custodians do not yet exist. He also indicated the SEC would explore allowing state trust companies to serve as custodians, addressing a key constraint that has limited institutional participation in digital assets.
Senate Vote Dynamics
The CLARITY Act cloture vote requires 60 votes to proceed. With Republicans holding 53 Senate seats, at least seven Democrats must cross over. Even if cloture passes, that outcome would only open debate rather than guarantee final passage.
Senator Cynthia Lummis characterized the vote as consequential, noting that Democrats have secured over 100 changes to the text, including self-custody protections and retail-investor safeguards. President Trump has also signaled agreement on ethics provisions covering elected officials and their spouses.
Opposition remains, with Senate Democrats preparing a counterproposal and banking groups plus New York state attorneys general filing formal objections.
The Regulatory Path Forward
Atkins' speech aligns with recent statements from Coinbase CEO Brian Armstrong and Grayscale, both of which have argued that regulatory clarity will advance whether or not the Senate passes the CLARITY Act. The SEC's Project Crypto rulemaking calendar operates independently of legislative timelines, with the regulatory and legislative processes now running in parallel.
