The SEC turned more crypto-friendly, but markets wanted congressional rules, not agency signals alone. Here is why traders stayed cautious.The SEC turned more crypto-friendly, but markets wanted congressional rules, not agency signals alone. Here is why traders stayed cautious.

SEC Crypto Clarity Still Needs Congress to Matter

2026/03/22 13:15
4 min read
For feedback or concerns regarding this content, please contact us at [email protected]

The SEC shifted toward a more crypto-friendly posture in 2025, launching roundtables and signaling clearer rules. But the broader market barely flinched, and the reason is straightforward: traders wanted durable legislation from Congress, not just warmer signals from a single agency.

What the SEC actually clarified in 2025

SEC Chair Paul Atkins set a new tone in remarks delivered on April 25, 2025, telling attendees that “market participants engaging with this technology deserve clear regulatory rules of the road.” The statement marked a visible departure from the enforcement-first approach that had defined the agency’s prior years.

The SEC’s Crypto Task Force backed those words with process, launching a public roundtable series branded as a “Spring Sprint Toward Crypto Clarity.” The sessions zeroed in on whether the existing broker-dealer and custody framework needed tailoring for digital assets, a question the agency had previously left to enforcement actions rather than open discussion.

This was a genuine shift in posture, not a cosmetic one. But it was also limited. Atkins himself acknowledged the agency would need to work with Congress and the administration on a “rational, fit-for-purpose regulatory framework,” signaling that SEC guidance alone could not settle the full picture. For an industry that had spent years navigating regulation-by-enforcement, improved clarity was welcome, but it was not the finish line.

Why traders still wanted Congress, not just the SEC

Agency guidance can be reversed by the next administration. Statute is harder to undo. That distinction explains why SEC friendliness alone did not trigger a broad repricing of crypto assets, much like how geopolitical shocks have moved Bitcoin more decisively than policy signals in recent months.

The real market-structure question sat in Congress. The CLARITY Act of 2025 (H.R. 3633), introduced on May 29, 2025, aimed to divide oversight between the SEC and CFTC, addressing the jurisdictional ambiguity that had plagued the industry for years. The bill passed the House on July 17, 2025, by a vote of 294-134, then was referred to the Senate Banking Committee on September 18, 2025.

CLARITY Act House Vote
294-134
The House approved the bill by a wide margin, reinforcing that Congress, not just the SEC, was central to durable crypto-rule clarity.
Source: Congress.gov

Industry voices were explicit about the gap. Tiffany Smith testified that “congressional intervention is necessary to create a comprehensive and clear regulatory framework for digital assets.” Bill Hughes put it more bluntly: “Durable clarity on the law is what we need today.” Both statements appeared in the House committee report backing the CLARITY Act.

The SEC-versus-CFTC jurisdiction split was the core unresolved problem. Without legislation defining which tokens fall under which regulator, projects and exchanges still faced conflicting interpretations. That uncertainty, not hostility from the SEC, was what kept institutional capital cautious. The dynamic mirrors broader macro hedging behavior where traders wait for structural catalysts rather than reacting to sentiment shifts.

Related articles

Bitcoin Hedge Thesis Grows as Fed Holds, Inflation Rises

Bitcoin Falls Below $69K After Trump Iran Threat Shakes Markets

What the headline gets wrong about market apathy

Framing this as “the market didn’t care” overstates what the evidence supports. No event-study dataset of price action, trading volume, or fund flows tied specifically to the SEC announcements was available to prove or disprove that claim.

What the evidence does support is a more precise conclusion: SEC clarity improved, but it was not enough to reprice the market on its own. AP coverage of the House’s crypto votes in July 2025 noted that even after passage, the broader market-structure bill faced an unclear path in the Senate, a framing consistent with traders treating the progress as incremental rather than decisive.

The market was not indifferent. It was waiting for the next real trigger. That trigger remains Senate action on the CLARITY Act or equivalent federal legislation that settles which agency oversees what, in a form that survives future administrations. Until that happens, the gap between regulatory signals and legislative certainty will continue to define how crypto markets price U.S. policy risk.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.

Market Opportunity
Notcoin Logo
Notcoin Price(NOT)
$0,0003828
$0,0003828$0,0003828
-5,08%
USD
Notcoin (NOT) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future

UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future

The post UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future appeared on BitcoinEthereumNews.com. Key Highlights Microsoft and Google pledge billions as part of UK US tech partnership Nvidia to deploy 120,000 GPUs with British firm Nscale in Project Stargate Deal positions UK as an innovation hub rivaling global tech powers UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future The UK and the US have signed a “Technological Prosperity Agreement” that paves the way for joint projects in artificial intelligence, quantum computing, and nuclear energy, according to Reuters. Donald Trump and King Charles review the guard of honour at Windsor Castle, 17 September 2025. Image: Kirsty Wigglesworth/Reuters The agreement was unveiled ahead of U.S. President Donald Trump’s second state visit to the UK, marking a historic moment in transatlantic technology cooperation. Billions Flow Into the UK Tech Sector As part of the deal, major American corporations pledged to invest $42 billion in the UK. Microsoft leads with a $30 billion investment to expand cloud and AI infrastructure, including the construction of a new supercomputer in Loughton. Nvidia will deploy 120,000 GPUs, including up to 60,000 Grace Blackwell Ultra chips—in partnership with the British company Nscale as part of Project Stargate. Google is contributing $6.8 billion to build a data center in Waltham Cross and expand DeepMind research. Other companies are joining as well. CoreWeave announced a $3.4 billion investment in data centers, while Salesforce, Scale AI, BlackRock, Oracle, and AWS confirmed additional investments ranging from hundreds of millions to several billion dollars. UK Positions Itself as a Global Innovation Hub British Prime Minister Keir Starmer said the deal could impact millions of lives across the Atlantic. He stressed that the UK aims to position itself as an investment hub with lighter regulations than the European Union. Nvidia spokesman David Hogan noted the significance of the agreement, saying it would…
Share
BitcoinEthereumNews2025/09/18 02:22
Shiba Inu (SHIB) Sees Shorts Exit in 4 Hours While Price Eyes Recovery

Shiba Inu (SHIB) Sees Shorts Exit in 4 Hours While Price Eyes Recovery

The post Shiba Inu (SHIB) Sees Shorts Exit in 4 Hours While Price Eyes Recovery appeared on BitcoinEthereumNews.com. Shiba Inu reversed a three-day drop earlier
Share
BitcoinEthereumNews2026/03/22 16:25
Szabo Warns Developers Not to Break Bitcoin

Szabo Warns Developers Not to Break Bitcoin

The post Szabo Warns Developers Not to Break Bitcoin appeared on BitcoinEthereumNews.com. The nonviolent blockchain Is Bitcoin used as money?  Legendary cryptographer
Share
BitcoinEthereumNews2026/03/22 16:37