SEC and CFTC Advance Project Crypto as CLARITY Act Remains Stalled

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are reportedly advancing “Project Crypto,” a joint regulatory effort intended to provide greater clarity for digital-asset markets while the proposed CLARITY Act remains stalled. The initiative is described as a potential administrative alternative for addressing key crypto-regulatory questions, although it would not replace legislation enacted by Congress.

According to the report, Project Crypto seeks to define categories of crypto assets and establish clearer regulatory treatment for activities including staking, stablecoins, asset custody, token fundraising, and on-chain trading. The effort involves coordination between the SEC and CFTC, the two principal U.S. federal agencies with jurisdiction over securities and commodities markets, respectively.

The project has reportedly already generated a joint interpretation by the agencies. Additional crypto-related rulemaking is said to be included on the SEC’s agenda for 2026, indicating that the SEC may pursue further rules or guidance through its existing administrative authorities.

The CLARITY Act is characterized as the legislative framework that Project Crypto cannot substitute for. The bill remains pending, leaving unresolved the extent to which Congress may establish a comprehensive statutory market-structure framework and more clearly allocate oversight between the SEC and CFTC.

If implemented through agency interpretations, guidance, or rulemaking, Project Crypto could affect how crypto businesses structure staking services, stablecoin arrangements, custody operations, token offerings, and decentralized or on-chain trading activity. Its scope and legal effect would depend on the specific interpretations and rules issued by the agencies, as well as any applicable statutory limits and procedural requirements.