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Bitcoin and Ethereum Declared Non-Securities as SEC Chair Atkins Backs Clarity Act: ‘I Trust It Will Reach Trump’s Desk’

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SEC Project Crypto Framework

The post Bitcoin and Ethereum Declared Non-Securities as SEC Chair Atkins Backs Clarity Act: ‘I Trust It Will Reach Trump’s Desk’ appeared first on Coinpedia Fintech News

Securities and Exchange Commission Chair Paul Atkins made one of the most significant announcements in the history of American crypto regulation on Tuesday, declaring that Bitcoin, Ethereum and a broad range of digital assets are formally exempt from securities laws, a ruling that draws a clear legal line under more than ten years of industry confusion and enforcement-by-ambiguity.

Speaking at the DC Blockchain Summit 2026, Atkins unveiled a new token taxonomy and investment contract interpretation framework that the SEC is implementing immediately.

“The SEC’s persistent failure to provide clarity on this question is over,” Atkins told attendees.

What the Framework Actually Says

The new framework establishes four categories of crypto assets that are explicitly not securities under U.S. law. Digital commodities, which include Bitcoin and Ethereum, sit at the top of the list. Digital collectibles, digital tools, and payment stablecoins issued under the GENIUS Act round out the remaining three categories.

Under the new interpretation, only one class of crypto asset remains subject to SEC oversight: digital securities, defined narrowly as traditional financial securities that have been tokenised and moved onto a blockchain. Everything else falls outside the SEC’s jurisdiction.

Atkins was blunt about what this means for the agency’s identity.

“We are not the Securities and Everything Commission anymore,” he said.

Safe Harbors for Startups and Fundraising

Beyond the taxonomy, Atkins previewed two new capital-raising pathways designed to bring crypto innovation back to U.S. soil.

The first is a startup exemption, a time-limited registration exemption lasting up to four years that would allow early-stage crypto projects to raise up to $5 million while operating under a regulatory runway rather than full securities compliance.

The second is a fundraising exemption that would allow more established projects to raise up to $75 million in any 12-month period, provided they file a disclosure document with the SEC covering the project’s financial condition and audited financial statements.

Both exemptions would sit alongside existing capital-raising mechanisms, not replace them.

Congress Still Holds the Final Card

Despite the sweeping nature of Tuesday’s announcement, Atkins was clear that regulatory frameworks issued by the SEC alone are not a permanent solution. Only Congress, he said, can future-proof crypto regulation through comprehensive market structure legislation.

He expressed strong support for the bipartisan Clarity Act currently moving through Capitol Hill, describing Regulation Crypto Assets as a head start on implementing the bill ahead of its expected passage.

“I trust it will soon reach President Trump’s desk,” Atkins said.

For an industry that has spent a decade navigating enforcement actions, legal threats and regulatory ambiguity, Tuesday’s announcement marks the clearest signal yet that Washington is finally ready to let crypto grow up.

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Crypto

White House crypto adviser blasts Senate Democrats as CLARITY Act hits September deadline

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White House crypto adviser Patrick Witt called out Democrats for stalling the CLARITY Act’s progress. On X, he accused them of orchestrating a total blockade against a minor procedural vote on the bill prior to the August recess.

He contended, “Chuck Schumer and the “pro-crypto Democrats” pulled out all the stops to block a mere procedural vote on the bill before recess, demanding yet another extension.” 

His remarks come after a lengthy overnight voting session where the bill missed its pre-summer vote, leaving it with low chances of passing in September. This Saturday, nonetheless, Republican John Thune, filed a motion to schedule a critical procedural vote on the Clarity Act immediately following the August recess. With the bill’s precarious position, the legislative action was necessary to keep its 2026 passage prospects alive.

Thune wrote in his filing, “We, the undersigned senators … hereby move to bring to a close debate on the motion to proceed to calendar number 423, [House Resolution] 3633, an act to provide for a system of regulation of the offer and sale of digital commodities by the Securities and Exchange Commission and the Commodity Futures Trading Commission.” 

Witt says that if Senate cannot vote on the bill in September, it probably never will

In his X post, Witt acknowledged the multi-year effort by Congress to establish a crypto framework, highlighting that the Senate has been intensely negotiating the Clarity Act since last summer.

However, he noted that if Senators can’t vote on the bill by September 15, they would likely permanently stall the bill’s chances. Just last month, Galaxy Research dropped the bill’s chances of passing in 2026 from 50% to 30%, given how close they were to the August break with little progress.

Like Witt, Thune had earlier blamed Democrats for the bill’s delay. Though even at the time, he insisted the CLARITY Act would be their first priority after the recess. Now that his motion has been filed, the legislation is in line for the Senate’s cloture process, which entails several procedural steps and waiting periods before a final vote. 

September vote could determine the bill’s fate

The September window is becoming increasingly important for the crypto industry, as another delay could push the CLARITY Act into an even more uncertain political environment.

The legislation is intended to clarify the jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission, addressing a long-standing source of uncertainty for digital asset companies operating in the US.

A failure to advance the bill could also leave crypto firms waiting longer for a comprehensive market-structure framework, particularly as lawmakers turn their attention toward the November midterm elections. The limited September legislative calendar, therefore, puts additional pressure on both parties to resolve their remaining disagreements and secure enough support for a floor vote.

For the bill’s supporters, the next few weeks will be crucial. Republicans will need to maintain unity while persuading enough Democrats to support the legislation, while Democrats face pressure to secure changes to provisions they consider problematic before allowing the bill to advance.

The bill will have to compete for Senate floor time with other bills in September, the chamber’s last period of business before the midterm elections take center stage. Even so, because Thune started the process, the Senate can vote almost immediately upon their return, potentially clearing that first major hurdle on their second day back in September. Besides, senators need only a few days within the three-week September session to complete the voting process. Formally, the Senate will resume sessions on September 14.

The CLARITY Act needs 60 votes to pass

Lawmakers are still split on several contentious issues, specifically, the fine print on dealing with financial crime, the fight over stablecoin rewards, and government ethics guidelines. In July, Senators Gallego and Tillis proposed an ethics compromise that would give state attorneys general the power to enforce a ban on public officials and their spouses from launching or sponsoring digital assets. The compromise also includes a provision requiring President Trump to sell his stakes in crypto-related businesses, but he has yet to sign off on the plan. 

The bill would need roughly 60 votes to pass. With 53 Republicans, they would need at least 7 votes from Democrats or independents if the entire GOP caucus supports it. Nonetheless, Crypto Council for Innovation CEO Ji Hun Kim posted on X that they plan to lobby both Republicans and Democrats over the August break to lock in the votes needed for September. 

 

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