Peirce names the one thing the SEC can't fix if the Clarity Act dies

SEC Commissioner Hester Peirce (@HesterPeirce) says she remains optimistic the Clarity Act will pass, but used a recent appearance on CoinDesk's Policy Protocol to draw a clear line between what the agency can accomplish on its own and what only Congress can deliver.

What the SEC Can Do Without Congress

Peirce has been one of the most vocal internal advocates for crypto reform at the SEC. In January 2025, the agency launched a crypto task force led by Peirce, with priorities that included rules on a digital asset's security status, clearer paths for registered offerings, and guidance on custody, lending, and staking. She told CoinDesk that even without the Clarity Act, the SEC retains meaningful scope to act, from crypto fundraising frameworks to custody rules and tokenized securities.

Peirce said the SEC will continue pursuing regulatory reform for digital assets regardless of the bill's outcome, and that a well-defined market structure would boost US competitiveness and reduce long-term regulatory uncertainty.

The Problem Only Congress Can Solve

There is, however, one gap that no amount of agency rulemaking can close. Many crypto platforms list tokens that qualify as securities alongside tokens that do not, and Peirce says the SEC's authority over trades in that second group is legally unclear. That is a question that requires an act of Congress, not a staff bulletin.

The Clarity Act would divide oversight of crypto between the SEC and the Commodity Futures Trading Commission and build a federal structure for spot markets, a structure that does not currently exist. The framework would also clarify the application of the Howey Test, the standard for determining when a token qualifies as part of an investment contract.

The timing of Peirce's comments is deliberate. The bill cleared the House on a 294-134 bipartisan vote in July 2025 and advanced out of the Senate Banking Committee on a 15-9 vote in May 2026, but a Senate floor vote has yet to be scheduled. The bill must still achieve a 60-vote threshold in the Senate, undergo House-Senate reconciliation, and receive a presidential signature to become law.

If the Clarity Act fails to clear the Senate before the approximately August 7 recess cutoff, it does not merely delay a law. It leaves reversible administrative action as the only protection standing between the crypto industry and a future administration's enforcement priorities. Galaxy Research has estimated passage odds at roughly 50-50 for 2026, treating the August recess deadline as the last realistic legislative gate before the calendar works against enactment.

Sources:
Yahoo Finance: SEC's Peirce Expects CLARITY Act Senate Vote Before August Recess
Crypto Briefing: Clarity Act Set for Full Senate Vote
Latham & Watkins: US Crypto Policy Tracker