SEC Chair Supports CLARITY Act but Vows Continued Regulatory Reform Regardless

SEC Chair Gary Gensler voiced support for the CLARITY Act's passage through Congress but stated that the agency will continue advancing virtual asset regulatory reforms irrespective of whether the bill becomes law.

Speaking at a Solana Policy Institute event in Washington, Gensler urged Congress to vote on the CLARITY Act and send it to the president as soon as possible. However, he clarified that legislative action is not a prerequisite for SEC policy initiatives.

'Clearly, whether this bill passes or not, this administration will move forward with policies for U.S. investors and technology innovators,' Gensler emphasized.

The SEC is currently focused on 'Project Crypto' to overhaul the virtual asset regulatory framework. Gensler outlined three key initiatives: regulating capital raising through virtual assets under 'Regulation Crypto Assets,' updating a 40-year-old securities intermediary rule to allow blockchain as a digital title registry, and revising custody regulations to permit investment advisors to hold virtual assets directly or use state trust companies as custodians.

Describing these measures as the 'three pillars' of the regulatory framework, Gensler warned that the SEC must not be the last agency to recognize that the world has changed.